Avalanche-based decentralized finance (DeFi) protocol Trader Joe claims it may have found a way to mitigate one of DeFi’s biggest weaknesses — impermanent loss. In a newly released whitepaper on Aug. 23 called the JOE v2 Liquidity Book, authored by Quant developers and researchers Adam Sturges, “TraderWaWa”, “Hanzo” and software engineer “Louis MeMyself”, the developers outlined the use of Liquidity Book (LB) with an additional variable fee swap feature to "provide traders with zero or low slippage trades." /4 Impermanent Loss One of the most critical issues of Uniswap V3 is that impermanent loss often exceeds swap fees. A study …

Bankrupt crypto lending company Celsius countersued decentralized finance (DeFi) protocol KeyFi and its CEO Jason Stone on Tuesday in the United States Bankruptcy Court claiming Stone misrepresented himself as an expert in DeFi and Stone and KeyFi lost Celsius coins through incompetence and deceit. The suit came several weeks after KeyFi sued Celsius for allegedly failing to honor a profit-sharing agreement. KeyFi provided Celsius with staking services and DeFi strategy. According to the Celsius suit, the defendants allegedly stole millions of dollars in coins from Celsius wallets. Further, Celsius alleges, the defendants bought nonfungible tokens (NFTs) with Celsius coins, without …

While mainstream coverage of cryptocurrency has been overwhelmingly negative in the wake of the collapse of the Terra ecosystem, the bankruptcy of Celsius and the fall of Three Arrows Capital, these events ultimately show why more of the financial system should operate on-chain, bringing more transparency and information to market participants. In all three cases, the damage was caused and exacerbated by opaque, off-chain entities. And while the reason for the trio of events is important, it has also caused considerable damage to the overall reputation of the industry. These events have made it clear that the industry is in …

iFinex, the company responsible for Bitfinex Derivatives, announced on Aug. 23 the launch of a new service offering available to users before the highly-anticipated Ethereum (ETH) Merge. The exchange now offers Ethereum Chain Split Tokens (CSTs). Tokens available to users represent the two systems involved in the Merge: ETHW (PoW) and ETHS (PoS). Bitfinex released the new trading tokens for users to have the possibility to trade on the potential forking event. The coins will be available through the Bitfinex derivatives platform. Bitfinex CTO Paolo Ardoino said they released these new tokens better to prepare users for all eventual possibilities …

The Metaverse as a concept is an attempt to fuse physical reality, augmented reality (AR) and virtual reality (VR) into one seamless and immersive experience. The term “metaverse” was first used in Neil Stephenson’s 1982 cyberpunk novel Snow Crash. Stephenson’s metaverse was a virtual place where characters could go to escape a dreary totalitarian reality. Some of the key attributes of the Metaverse include: Even before the Metaverse became a phenomenon amid the nonfungible token (NFT) craze and crypto market boom, the concept was already in focus with the likes of Facebook, now Meta, Apple, Microsoft, Samsung and several other …

Cross-chain bridges have increasingly become targeted by malicious entities. However, not all hackers can run away with millions in their exploit attempts. Some end up losing money from their own wallets. In a Twitter thread, Alex Shevchenko, the CEO of Aurora Labs, told the story of a hacker who attempted to exploit the Rainbow Bridge but ended up losing 5 Ether (ETH), worth around $8,000 at the time of writing. According to Shevchenko, the hacker has presented a falsified NEAR block to the Rainbow Bridge contract and submitted the required 5 ETH safe deposit. Thinking that the team would be …

What are some of the best platforms available on the market today? Modern exchanges are aggregating deeper liquidity to ensure sufficient funds in pools. The number of modern platforms is rising, making it hard for a user to choose the most suitable option. KyberSwap is one competitive DEX on the market, operating with the ability to aggregate liquidity from over 80 exchanges across 11 chains extending from Avalanche to Aurora. Working hand in hand with a Dynamic Trade Routing platform, traders are guaranteed optimal trade routes and prices with an algorithm that automatically splits trades across these exchanges. The DEX …

SudoRare, an automated market maker (AMM) protocol for ERC-721 to ERC-20 swaps, suddenly shut down its services and social media accounts after reportedly making away with 519 Ether (ETH), worth roughly $815,000. A crypto community member, sungjae_han, was first to point out a suspicious transaction that drained substantial funds off SudoRare using LooksRare (LOOKS) and USD Coin (USDC) tokens. #PeckShieldAlert #rugpull Seems like @SudoRare rugged 519 $ETH (~$815k). SudoRare already deleted its social accounts/groups, sudorare[.]xyz is down Stole funds already transferred to 3 new addresses (173 $ETH/address): 0x75c3b2...3981 0x0498d1...8074 0xbFb784...7EAa https://t.co/mPC4bl4k6W pic.twitter.com/O5D7jThYvm — PeckShieldAlert (@PeckShieldAlert) August 23, 2022 A subsequent …

On Monday, developers of decentralized nonfungible tokens (NFTs) borrowing and lending protocol Bend DAO proposed new emergency measures in an attempt to stabilize the ecosystem. The same day, it was revealed that the project had just as little as 15 wrapped Ether (wETH) worth $23,715 to pay back lenders. Approximately 15,000 ETH was lent using the mechanism. To save the protocol from a credit crisis, the Bend Dao dev team suggested that the liquidation threshold for collateral would be constrained to 70% of the loan value, down from 85%. Next, the auction period for NFTs on its platform would be …

The Ethereum ecosystem continues to witness a flurry of activity that has individuals and organizations deploying token contracts, adding liquidity to pools and deploying smart contracts to support a wide range of business models. While notable, this growth has also been riddled with security exploits, leaving decentralized finance (DeFi) protocols vulnerable to hacks and scams. For instance, recent findings from crypto intelligence firm Chainalysis show that crypto-related hacks have increased by 58.3% from the beginning of the year through July 2022. The report further notes that $1.9 billion has been lost to hacks during this timeframe — a figure that …

The CEO of a decentralized derivatives exchange has told Cointelegraph that many DEXs are unusable — and he's determined to change that. Lei Wang is the head of Kine, which aims to provide a fast, effortless way to trade derivatives across multiple blockchains. In a live ask-me-anything session on Cointelegraph's YouTube channel, he revealed that trades using Kine's infrastructure are completed in 20 milliseconds — and users can take out multiple positions on the same asset, all while managing them separately. Plus, in an attempt to reach a broad cross-section of users, a copy trading feature serves as an educational …

Lending protocol BendDAO has run out of Wrapped Ether (wETH) in its contract. At the time of writing, the contract only has 15 WETH to pay lenders, and an estimated 15,000 Ether (ETH) left to be paid to lenders. Researcher NFTStatistics.eth dissected the issue in a Twitter thread, highlighting that NFT borrowers in the platform should now pay 100% interest on the ETH they borrowed. In addition, the debt positioned against the NFTs is also on the rise. Furthermore, the researcher noted that many of the NFTs that have been used as collateral and defaulted currently have no bids. In …