This one is upsetting. Yesterday, decentralized finance protocol Value DeFi tweeted that it is "very excited with our most recent innovation, the MultiStables Vault, and we strive to ensure your funds are always SAFU with our vaults." Lots of emojis, lots of pride in one's work.
Then today: "The MultiStables vault was the subject of a complex attack that resulted in a net loss of $6M. We are currently working on a postmortem and are exploring ways to mitigate the impact on our users."
The MultiStables vault was the subject of a complex attack that resulted in a net loss of $6M. https://t.co/dnFRa5yPBJ We are currently working on a postmortem and are exploring ways to mitigate the impact on our users.
The Telegram group, before Decrypt was banned, was a mixture of distress and anxiety. The usual: some community members still in a daze from the attack, and others rushing to put out the FUD—Fear Uncertainty and Doubt. The Discord chat is currently a mess.
It appears as though the attack was down to a flash loan. The attacker took out a flash loan to affect the prices of tokens held within curve finance vaults, then bought them for a low price and paid back the loan, netting a profit.
The MultiStables Vault was supposed to have the following advantages: "1) Flash-loan attack prevention 2) Fake-token attack prevention 3) Re-entrance attack prevention." It turned out to have none of those.
Value DeFi's Discord Chat.
Justin Bebis, the member of Value DeFi's discord chat who had summed the mood up best, told Decrypt, "The team are a bunch of great guys, the community management was about the best I've seen...they hired community members, promoted community artwork, and made fantastic progress every week. I doubt they'll give up after this but it's sad to see the community torn apart."
'Prod', Value DeFi's community manager, told Decrypt, "We won't be giving up, we will develop a plan and keep pushing forward."
And then...whoosh, the token's price falls off a cliff.
Value DeFi token price. Image: CoinMarketCapValue DeFi's Discord chat.
A sad day for decentralized finance.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
Some say crime doesn’t pay—but blockchain data suggests that an attacker who exploited a flaw in a GMX’s codebase earlier this week is walking away with a $5 million bounty.
“Ok, funds will be returned later,” the individual said in an on-chain message on Friday, days after they absconded with over $40 million worth of crypto from the decentralized exchange.
GMX, which specializes in perpetual futures trading on Avalanche and the Ethereum layer-2 scaling network Arbitrum, was later sent $10 mill...
GMX, a cross-chain decentralized exchange specializing in perpetual futures trading, warned on Wednesday that an initial version of its platform was exploited.
Roughly $40 million worth of tokens were siphoned from GMX V1, which debuted on the Ethereum layer-2 scaling network Arbitrum in 2021, to an unknown wallet, GMX said on X. In response, GMX V1 trading was disabled, alongside the minting and redeeming of GMX’s GLP token on Arbitrum and the layer-1 network Avalanche, GMX said.
GMX was recent...
Vladimir Tenev, co-founder and CEO of Robinhood, has outlined the platform’s intent to list “thousands” of private companies as tokenized stocks. The statement follows controversy regarding its tokenized stocks for private firms OpenAI and SpaceX. The ChatGPT creator went so far as to publicly denounce the offering.
Private companies are not publicly traded on stock exchanges. The firms typically attract investment from founders, venture capitalists, private equity firms, and also sometimes ange...