DeFi - decentralized finance

[derangedlawyer]

Haven't seen a thread on DeFi, aka the hottest **** in crypto since last year.
Anyone been using Curve, YFI, AAVE, etc to borrow, lend or make sick APRs?
Anyone got lucky with retroactive airdrops such as UNI, DIGG, and now TORN?
Share your stories, ask questions.

 

[orr]

for those with an interest;

 

[derangedlawyer]

Straight from the Federal Reserve:

 

[noirua]

DeFi protocols declare losses as attackers exploit LUNA price feed discrepancy

The protocols lost millions of dollars because of the price inaccuracy following the LUNA price drop.

cointelegraph.com

 

[Garpal Gumnut]

Midas was the last guy who tried DeFi.

And it did not end well.

You were warned.

This is advice.

gg

 

[Dona Ferentes]

The brain behind Terra was Do Kwon, a 31-year old Korean-born Stanford University computer science grad with ferocious ambition. So much so that he quit a job at Microsoft because it was too pedestrian. A whale in the crypto world, he has been likened to Apple founder Steve Jobs due to his relentless pursuit of “ultra- decentralisation”.

Kwon designed UST as a stablecoin tied to the US dollar. Stablecoins are the crypto equivalent of a safe asset and are useful for crypto traders wanting to park money in “cash” without exiting the crypto ecosystem.

But Kwon and his team didn’t want to own just any old-world fiat like US dollars to back up their 1:1 claim. Instead, UST’s stability was governed by algorithms and protocols that ensured total autonomy......

...... Alongside the billions wiped from UST investor books, Kwon’s fortunes have also shrunk. But, fortunately for him, it seems he was never motivated by money.

“We don’t intend to walk out of this journey being billionaires,” he told The Generalist in November.

.........
and so it came to pass.

A week of terra: behind the collapse of a $26b stablecoin

The collapse of terra coin has sent shockwaves through the market. This is how it happened.

www.afr.com

 

[3 hound]

Defi shows some promise but imo it is not developed enough to gain widespread trust amongst the population.

Worst case scenario the only defi that might become available would be central bank digital currency AKA programmable money..that would undermine all the ideals, goals and principles of why defi started in the first place.

 

[moXJO]

The brain behind Terra was Do Kwon, a 31-year old Korean-born Stanford University computer science grad with ferocious ambition. So much so that he quit a job at Microsoft because it was too pedestrian. A whale in the crypto world, he has been likened to Apple founder Steve Jobs due to his relentless pursuit of “ultra- decentralisation”.

Kwon designed UST as a stablecoin tied to the US dollar. Stablecoins are the crypto equivalent of a safe asset and are useful for crypto traders wanting to park money in “cash” without exiting the crypto ecosystem.

But Kwon and his team didn’t want to own just any old-world fiat like US dollars to back up their 1:1 claim. Instead, UST’s stability was governed by algorithms and protocols that ensured total autonomy......

...... Alongside the billions wiped from UST investor books, Kwon’s fortunes have also shrunk. But, fortunately for him, it seems he was never motivated by money.

“We don’t intend to walk out of this journey being billionaires,” he told The Generalist in November.

.........
and so it came to pass.

A week of terra: behind the collapse of a $26b stablecoin

The collapse of terra coin has sent shockwaves through the market. This is how it happened.

www.afr.com

Kwon was warned last year that this exact situation would happen. Even goaded billionaires to do it.

 

[noirua]

“Our analysis shows a fake collateral token is added and a malicious price oracle is used to liquidate current users. The loss is estimated to be >$12M.”

DeFi flash loan hacker liquidates Defrost Finance users causing $12M loss

Blockchain investigator PeckShield found that the hacker manipulated the share price of LSWUSDC, leading to a gain of roughly $173,000 for the hacker.

cointelegraph.com

 

[noirua]

Pendulum - Limitless fiat. Decentralized future.

Pendulum's interoperable blockchain brings together high-quality fiat tokens in a single, powerful DeFi network. Offering composable fiat solutions with 1000x performance.

pendulumchain.org

 

[noirua]

Fantom CEO defends Solana amid network woes

Cronje referred to the Solana network as a victim of success.

cointelegraph.com

This is not the first time Solana has gone down. Solana suffered a significant outage in early February 2024. Downtime in block production on its mainnet halted the network’s block progression for over five hours.

Since January 2022, Solana has seen around half a dozen significant outages and 15 partial or primary outage days. Solana-focused software development firm Anza released a postmortem report of the recent outage on Feb. 9.

 

[noirua]

DeFi booms as daily active wallets hit 7M, VanEck bullish on Ethereum L2s: Finance Redefined

The surge in DeFi in recent months saw DApp activity increase by 77% in the fourth quarter of 2023.

cointelegraph.com

Market analysts predict layer-2 blockchains are set to capitalize on Ethereum’s primary challenge to process, store and compute data, which might propel it to a $1 trillion market cap by 2030.

 

[noirua]

Here’s how to tackle DeFi fragmentation through unified liquidity

By unifying liquidity across multiple blockchains, this solution enhances trading efficiency and reliability in DeFi, addressing the issue of liquidity fragmentation

cointelegraph.com

Orderly Network unifies liquidity across multiple blockchains, enhancing trading efficiency and reliability.

Worth reading as DeFi moves forward even further on the collapse of FTX. The combination of DeFi and CeFi enhances transparency.