Bonfida DEX Restricts Access to US-based Users

Serum-based, Bonfida decentralized digital asset exchange (DEX) is the latest decentralized finance (DeFi) project to put the US in its restrictive region list.

According to Bonfida’s terms of use, the Bonfida DEX is not available to residents of the USA. With this, the US has joined the Democratic People’s Republic of Korea, Belarus, the Central African Republic, the Democratic Republic of Congo, the Crimea region of Ukraine, Cuba, Iran, Libya, Somalia, Sudan, South Sudan, Syria, Yemen, and Zimbabwe.

“If you intend to enter into any transactions involving derivatives, you also confirm that you are not located in, incorporated or otherwise established in, or a citizen or resident of, a Derivatives Restricted Jurisdiction,” said the exchange.

Last month, the decentralized exchange aggregator 1Inch also started geofencing US IP addresses.

As we reported, 1Inch also includes the US in its list of restricted territories and blocks people from these regions from using a Virtual Private Network (VPN) to access the website. The platform said that it had been planning to launch a new product in the US in compliance with the regulatory requirements.

DEX dYdX has also updated its terms of service to mention that if the user is a US citizen or resident, they are required to physically settle all trades made using dYdX and fully close and physically settle all open margin positions within 28 days.

US-based users are also not permitted to access or trade any of the platform’s advanced features, including Bitcoin trading and perpetual contracts on dYdX. They are also not to use a VPN to modify your internet protocol address or otherwise circumvent or attempt to circumvent this prohibition.

Earlier last month, dYdX users celebrated a massive DYDX token airdrop worth thousands of dollars for many people. However, those who traded on the platform using an IP address within the United States were not eligible for the airdrop or to participate in its staking program.

“This has become almost standard now. People don’t need the US market to win anymore, so US regulators no longer have leverage with truly global founders. The future has already escaped their grasp,” commented Balaji Srinivasan, former CTO of Coinbase and General Partner at Andreessen Horowitz.

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Author: AnTy

Automated Market Maker Glide Finance Exploited, Post-Mortem Reveals It Was The Teams Own Fault

Automated Market Maker Glide Finance Exploited, Post-Mortem Reveals It Was The Teams Own Fault

A little-known DEX, Glide Finance, was exploited for $300,000 late on Sunday, and funds were drained from their pair contracts.

The audit protocol said while diagnosing the root cause of the exploit, they found that it wasn’t the smart contract auditor Paladin Blockchain Security’s fault, rather their own. The team said,

“We made a fee parameter change post-audit and failed to update a number from 1000 to 10000 on the contract.”

“We are ashamed and disappointed in ourselves to have made such a mistake, as it could have easily been avoided with better due-process.”

The project is now contacting cryptocurrency exchanges to block transfers and has asked its users to withdraw any funds still deposited in Glide liquidity pools.

The Glide Finance team has also delayed the launch of farming on Tuesday, which would have allowed users to earn GLIDE tokens for liquidity mining and staking.

Glide Finance is the first automated market maker (AMM), yield farming, and staking platform on Elastos Smart Chain (ESC), a sidechain to the Elastos mainchain that supports Solidity smart contracts. The project runs on a DPoS consensus mechanism to deliver a high-performance, scalable solution for the Elastos ecosystem.

80% of all swap fees on the platform are converted to ELA tokens and shared with platform users. According to the website, there are currently less than $650 worth of assets locked on the platform and one circulating GLIDE.

The team has released a request form for the victims to fill out their addresses if their balances are incorrect or their address has appeared on a list of affected addresses.

“We have not yet determined how reimbursement and/or resolution will occur but we are working on it.”

“We hope we can recover from this and move forward, but we realize our reputation may be irreparably damaged.”

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Author: AnTy

Russia has No Plans to Ban Crypto Unlike China, says Deputy Finance Minister

Russia Has No Plans to Ban Cryptocurrencies Unlike China, says Deputy Finance Minister

A Siberian region, which relies heavily on hydroelectric power and is known for its cheap electricity, also saw its energy consumption surging 159% due to an “avalanche” of crypto-mining.

After the US Federal Reserve Chairman Jerome Powell and US Securities and Exchange Commission (SEC) Gary Gensler clarified in no uncertain terms that they have no plan to ban Bitcoin and cryptocurrencies, Russia’s Deputy Finance Minister Alexei Moiseev conveyed the same thoughts.

Moiseev told reporters this week that Russia does not plan to follow the same path as China and introduce a ban on the purchase of crypto by citizens on foreign exchanges, according to a local publication.

“Russian citizens can have a wallet open outside the Russian Federation, but if they operate within the Russian Federation then they will be subject to bans, I think, for the entire foreseeable future, due to our financial sovereignty,” said Moiseev during a “Digitalization of Financial Markets” lecture at MGIMO.

Last month, China strengthened its crackdown on crypto mining and trading; as a result, a flood of Bitcoin miners are now also moving to Russia besides Kazakhstan and the U.S.

A Siberian region, Irkutsk, which relies heavily on hydroelectric power and is known for its cheap electricity, saw retail energy consumption surging 159% this year, from 2020 levels due to an “avalanche” of underground crypto-mining, Governor Igor Kobzev said in a letter to Russian Deputy Prime Minister Alexander Novak.

“The situation is an unpredictable event for the region and is leading to significant loads on the power grid with the risk of accidents and emergencies,” reads the letter, in which Kobzev said the problem has been exacerbated by China’s ban on mining and called for higher electricity rates for miners.

Close Attention on Crypto

While no plans to ban crypto, the digital currency will not be allowed to be used as a means of payment within the country, as this could result in the loss of the government’s control over the money supply, said Deputy Finance Minister.

Moiseev further said that there is a need to define digital currency and blockchain in the country’s Civil Code and in specialized laws.

“The blockchain will obviously occupy its own niche and will be used where equal rights are needed.”

Last week, Anatoly Aksakov, the head of the State Duma Committee on the Financial Market had said that they are keeping “close attention” on the topic of digital assets and thinking about implementing legislative restrictions on the investment of unqualified investors in cryptocurrencies.

These measures, according to him, are necessary to protect private investors as billions of dollars are currently spent on the purchase of digital currency. But while there is a great risk, there is also great profitability, he noted.

“Here, of course, we need to prescribe in the legislation the norms that will protect an unqualified investor in ill-considered investments in digital currencies.”

In July this year, the Central Bank of the Russian Federation issued an information letter recommending Russian exchanges not to admit instruments linked to crypto and advised professional participants in the securities market to refrain from offering their unqualified clients access to crypto and the management company to include them in mutual funds.

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Author: AnTy

AnySwap and Aave Fork Geist Finance Send Fantom TVL Past $9 Billion, FTM Makes a New ATH

The total value locked (TVL) in the decentralized finance (DeFi) sector continues to hit a new all-time high, the latest being $209.8 billion, according to DeFi Llama. This growth reflects the growing world of multi-chains.

While Ethereum remains the king, accounting for about 68% of this TVL with $142.58 billion coming from the second-largest network, other chains like BSC ($$17.4 bln), Terra ($8.85 bln), Avalanche ($4.93 bln), and Polygon ($4.56 bln) are also growing.

Solana is currently the most popular one with a $10.6 bln TVL. While Fantom comes in third place with $9 billion in TVL, it had seen explosive growth in the past 24 hours when its TVL was at just $3.25 bln.

This growth is also reflected in FTM price, up 85% in less than two days to make a new all-time high at $2.43 on Friday. As of writing, FTM is trading at $2.34.

The majority of Fantom’s growth comes from AnySwap, a trustless MPC protocol to cross-chain any assets and data between chains. With 43.6% dominance in the Fantom ecosystem, AnySwap is responsible for almost $4 billion of Fantom’s TVL.

Decentralized non-custodial liquidity market protocol Geist Finance is another significant contributor with $3.19 billion of TVL. Geist Finance, a fork of popular lending protocol AaveAave, has been “giving LPs ridiculous incentives.”

Together, AnySwap and Geist Finance account for almost 78% of Fantom’s total TVL.

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Flows from Ethereum to FantomFDN have also been averaging $10-25 million per day over September. But it was over the last two days that it “increased by an unprecedented amount on the back of a new yield farm,” noted Delphi Digital.

Some notable mentions include SpookySwap, SpiritSwap, Beefy Finance, Curve, Scream, Tarot, Abracadabra, and Yearn Finance.

Abracadabra Money has launched a new stablecoin, Magic Internet Money, or MIM, which taps into yield tokens allowing people to borrow stables against them.

“Yearn alone has over $5B in TVL, meaning there were a lot of idle tokens to loan against,” said Delphi Digital.

On Thursday, Yearn Finance finally launched on Fantom as well, tweeting,

“Today, we go multichain with the launch of Iron Bank Fantom and the first Fantom vaults on http://beta.yearn.finance.”

The first vaults on Fantom include yvWFTM, yvUSDC, yvDAI, and yvMIM.

Yearn decided to go multichain because they need specific infrastructure to function safely and efficiently, both externally and internally.

“Our v2 vault codebase has hardened over the past few months, and the new beta website is a vast improvement, allowing us to switch chains relatively easily, something we simply could not have done in the past.”

As for choosing Fantom, it is fast and simple to use, not to mention easy to bridge thanks to Anyswap Network. “It doesn’t hurt that @AndreCronjeTech is a big fan,” it added.

Fantom, however, is just the beginning for Yearn as they plan to add support for other chains as well.

“The Realm expands, and we go with it. We want to meet people where they are, including new users and users with smaller deposits. Multichain expansion is a natural way to do this.”

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Author: AnTy

Avalanche-based Vee Finance Lures Attacker with a Bounty Program, PNetwork Offers $1.5M for Stolen WBTC

Avalanche-based Vee Finance Lures Attacker with a Bounty Program, PNetwork Offers $1.5 Mln to Retrieve Stolen WBTC

VEE token dropped 46.3% to its lowest low after putting in a new ATH just three days back. Down 72% from its peak, PNT recorded a 27.5% drop in its price following the attack.

This Monday, Avalanche-based lending protocol VEE Finance suffered an attack resulting in the loss of 8804.7 ETH and 213.93 BTC (worth about $27 million and $9.2 million at the rate of $3k ETH and $43k BTC, respectively), a total of more than $36 million.

Stablecoins on the platform are not affected by the attack, said the team.

Since then, the team has suspended the platform contracts to ensure the safety of users’ funds. The deposit and borrow function on the protocol has also been suspended.

In response, the token VEE dropped 46.3% in the past 24 hours to $0.10, up from the 0.0852 low put a few hours back, according to CoinGecko. Just three days back, the coin had put in a new all-time high at $0.854.

The team noticed a number of abnormal transfers and then had its contract address attacked and the assets in it stolen, it said on Tuesday in explanation.

The official announcement maintained that the attacker has not yet transferred or processed the stolen assets, and they are trying to contact the attacker to recover the assets, saying, “We are taking and handling this incident seriously and will do our best to protect the interests of VEE Finance users.”

The same day, cross-chain decentralized finance (DeFi) project pNetwork reported losing 277 Bitcoin worth more than $12 million in an attack.

The attacker found a bug in the protocol’s code and targeted the pBTC token on Binance Smart Cain (BSC), stealing most of the collateral. PNetwork has offered a $1.5 million bounty to the hacker if they return the stolen funds.

Its token PNT recorded a 27.5% drop in its price. Currently trading at roughly $0.942, it is down 72% from its ATH of $3.37 from five months back.

Bridges to other blockchains weren’t affected, and all other funds in the network are “safe,” assured the team.

The company has identified the bug and fixed it, saying, “Finding vulnerabilities is part of the game, unfortunately, but we all want DeFi ecosystem to continue growing; returning funds is a step in that direction.”

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Author: AnTy

DeFi Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Bln in TVL

The decentralized finance (DeFi) sector has started to go up, yet again.

DeFi tokens are in the green, gradually moving up with Perpetual protocol (PERP), leading the gains up 16% in the past 24-hours. Popular DeFi coins, PancakeSwap, AMP, Thorchain, Synthetix, Bancor, Curve, Swipe, Alpha, Venus, Polkastarter, and Akropolis are also up 5% to 10%.

This has the total DeFi market cap climbing towards its all-time high of almost $150 bln from mid-May, according to CoinGecko. As of writing, the market cap is above $143 bln.

But it is the total value locked (TVL) in the sector that is rising even more rapidly, which has surpassed the May peak of $156.2 bln last month, as per DeFi Llama. Currently, the TVL of the entire sector is sitting at almost $180 bln, with Aave contributing the highest at $16.33 bln.

In terms of layer 1 blockchains, Ethereum is a clear winner with roughly $131 bln in TVL, followed by Binance Smart Chain at $19.32 bln. Other popular blockchains with smart contract capability attracting the most capital include Terra $7.63 bln, Polygon $5.28 bln, Solana $4.81 bln, Avalanche $2.42 bln, and Fantom $1.25 bln.

Binance and Polygon are the only ones that are about 40% down from their ATH TVLs, while others are hitting new highs.

Deflationary Pressure

With these latest uptrends, DeFi is actually catching up to the rest of the market, with the overall market capitalization of crypto reaching $2.45 trillion, just inches away from May 12 ATH of $2.55 trillion.

Ether, in particular, has been rallying for the past month thanks to being the popular chain for the latest mania in town NFTs.

Ether briefly hit $4,000 late Friday and is currently trading around $3,950.

Besides NFTs, the London upgrade early in August, which implemented EIP 1559, is another factor behind its success as it reduced Ether’s supply increases and, at times, even making it deflationary.

Since the EIP 1559 upgrade a month ago, more than 212,000 ETH worth $714 mln has been burned, “resulting in continued disinflationary pressure on the Ethereum supply,” the Fundstrat crypto team wrote in a note Friday.

Onto New Highs

The breakout in Ethereum has cascaded into other cryptos and is also expected to help Bitcoin lead the way now.

The gains recorded by the leading cryptocurrency have been relatively smaller than its peers. But BTC also jumped $52,000 early on Monday and is hovering around this level now.

“Hold $50,000 and I expect Bitcoin to have another leg up to $60,000 and test the April highs,” said Antoni Trenchev, co-founder of crypto lender Nexo. But Bitcoin “needs to start closing above $50,000 and settle in the early 50s to temper concerns that this is a double top and we’re heading down to $30,000 again,” he said.

Amidst this, users on platforms including Reddit and Twitter are discussing plans to buy $30 worth of BTC en masse on Sept. 7 to mark El Salvador’s law-making Bitcoin a legal tender coming into effect.

El Salvador has already begun installing Bitcoin ATMs for the conversion of the token into USD, and Congress has approved the creation of a $150 million fund to back conversions.

Meanwhile, USD went back above 92.2 to start the week after dipping to 91.941 for the first time since August 4. Benchmark 10-year US Treasury yields firming to over a week high helped boost the dollar. US markets are shut for Labor Day.

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Author: AnTy

Cream Finance Exploited Yet Again, Hacker Stealing $18.8 Million in Ether and AMP

Cream Finance Exploited Yet Again, Hacker Stealing $18.8 Million in Ether and AMP

Another day, yet another decentralized finance (DeFi) hack. This time Cream Finance has been exploited for $18.8 million.

Founded by Taiwan Taiwan entertainment star Jeffrey Huang, Cream Finance is a decentralized lending protocol operating on Ethereum, Binance Smart Chain (BSC), and Fantom.

Cream offers a wide range of tokens on its money markets, including stablecoins, interest-bearing stablecoins, DeFi coins, LP-tokens, and other cryptos. The protocol has $1.61 billion of total value locked (TVL) in it, near its June 15 ATH of $1.72 bln.

In reaction to the news of the hack, the token CREAM dropped more than 8% in value and is currently trading around $166.58, roughly 56% from its early February high of $374.

Back in February, the protocol was attacked by a flash loan and lost $37.5 million. This time, half of the amount hacked last time has been stolen. The team took to Twitter to share that,

“C.R.E.A.M. v1 market on Ethereum has suffered an exploit, resulting in a loss of 418,311,571 in AMP and 1,308.09 in ETH, by way of reentrancy on the AMP token contract.”

AMP, a digital collateral token that offers instant and verifiable collateralization for any kind of value transfer, was trading at just above $0.059 before falling to $0.484 in the early hours of Monday. As of writing, AMP is trading at $0.0555, down 54% from its mid-June peak of $0.12. Ether meanwhile is trading just under $3,200.

“We have stopped the exploit by pausing supply and borrow on AMP. No other markets were affected,” said the team.

The Cream Finance team is working with PeckShield, a blockchain security and data analytics company, to investigate the attack.

According to PeckShield, the hack was made possible due to a reentrancy bug introduced by ERC777-like token AMP. It was exploited to re-borrow assets during its transfer before updating the first borrow.

Further explaining the attack, the blockchain security team said the hacker made a flashloan of 500 ETH and deposited the funds as collateral. Then the hacker borrowed 19 mln AMP and made use of the reentrancy bug to re-borrow 355 ETH inside AMP token transfer, and then the hacker self-liquidated the loan. PeckShield said,

“The hacker repeats the above process in 17 different txs and gains in total 5.98K ETHs (with ~$18.8M). The funds are still parked in 0xCE1F….6EDE. We are actively monitoring this address for any movement.”

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Author: AnTy

Sushi Summar Drama: VCs Dumping Tokens & Counter-Proposing Premium Buy to Get Their Hands on Millions of SUSHI

Popular decentralized finance  project Sushi is now aiming to attract institutional investors, a growing trend in the DeFi sector as seen with Compound Finance’s fixed 4% interest rate feature and Aave launching Aave Pro.

But Sushi thrives in drama, and after a controversial beginning this summer, we have yet another spectacle.

“To onboard institutional investors,” a new proposal called “Sushi Phantom Troupe – Strategic Raise” has been introduced that offers to use a portion of 51 million SUSHI, currently worth $357 million.

Following an “insane” month in terms of volume and an “attractive pipeline of upcoming releases,” the distribution as part of the broader Treasury Diversification plan has proposed up to $60 million, 25% of Developer Treasury to VCs with 10 million allocated to community members.

“SushiSwap has been a DeFi Community darling since inception, and at this juncture, we feel that it’s ready to welcome established crypto funds and cement SushiSwap as a household DeFi blue chip,” reads the proposal.

Sushi aims to raise capital and deploy it into productive assets via safe yield solutions, including Yearn vault, seed liquidity in key Kashi markets, and LP in a stable pool on Sushi to generate liquidity.

The fresh capital will be raised by selling its $60 million worth of tokens (SUSHI) to VCs, which will be converted into xSushi and receive xSushi yield whilst vesting for a “6-month cliff followed by 18-month linear vesting.”

These SUSHI tokens are proposed to be offered at a 20% to 30% discount to 30-Day TWAP.

The proposal has mentioned a “confirmed strategic Investor list,” which includes the likes of Spartan, Dragonfly Capital, Polychain, Blockchain.com, Pantera Capital, Jump, 3AC, Zee Prime, CMS Holding, DeFiance Capital, and others.

“Most interested parties already have stakes in SUSHI, and voting through this capital raise via governance should be a formality,” it added.

What seems to be in anticipation of buying back at low prices, some funds are speculated to have sold their SUSHI sending the price of the token crashing by over 25% to $6.39 in about the last nine days when the proposal was first introduced.

Most crypto VCs are chasing 100x returns, “generally focus on private market where their perceived edge is stronger,” said Arthur Cheong, founder of DeFiance Capital, noting while institutions have arrived, they are not venturing beyond Bitcoin.

Unlike the traditional market, crypto doesn’t have mutual/passive index funds to smoothen the volatility, and “the buying pressure of all VC unlocked bags almost 100% go to retails, with occasional trading in and out by the crypto hedge funds and prop trading firms.”

The proposal, however, is receiving some flak with Jeff Dorman, CIO at Arca, the digital asset management company that holds 7.51% of the xSUSHI circulating supply, saying it is “value-destroying,” and has made a counter-proposal.

“Sushiswap does not need money… We agree that there is merit to diversifying the Treasury, but not at current depressed prices,” wrote Dorman, who advocates for a diversified community of many smaller investors than a concentrated group of large passive investors.

Instead of a discount, Arca actually proposes to buy at a higher price with a minimum purchase of $10mm at the first offering price of $7.04. SUSHI is currently trading at $7, down 70% from its all-time high of $23.38 four months back.

The discount and short lock-up are “not indicative of a vibrant growth project like SUSHI,” and Dorman believes SUHSI is currently trading at a massive discount to its fair value.

“Now is absolutely not the time to be selling,” he added.

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Author: AnTy

Deutsche Borse Takes a Majority Stake for Over $100 Mln in Crypto Finance AG

Deutsche Borse Takes a Majority Stake for Over $100 Mln in Crypto Finance AG

This step has been taken in response to “increasing demand from established financial institutions who are looking to become active in this new asset class.”

German exchange operator Deutsche Borse Group has acquired a majority stake in Crypto Finance AG.

Founded in 2017, Crypto Finance is a Swiss-based fintech firm regulated by the Swiss Financial Market Supervisory Authority (FINMA), offers crypto trading and storage in over 200 crypto-assets for institutional and professional clients.

Deutsche Borse will take a two-thirds majority shareholding in Crypto Finance AG in exchange for an investment in “a moderate three-digit CHF million range,” more than 100 million Swiss francs ($108.68 million).

The deal, subject to regulatory approvals, is expected to close in the fourth quarter of this year. Jan Brzezek, CEO and co-founder of Crypto Finance, will remain chief executive along with the existing management team.

With this acquisition, Deutsche Börse aims to further get deeper into the digital assets market and provide its customers a direct entry point for investments, including custody. Thomas Book, executive board member for trading and clearing at Deutsche Börse said,

“Digital assets will transform the financial industry. There is increasing demand from established financial institutions who are looking to become active in this new asset class and want a trusted partner.”

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Author: AnTy

DeFi Protocol Cream Finance To Launch On Polygon

Decentralized lending protocol Cream Finance is set to launch on the Ethereum layer 2 scaling solution network, Polygon.

Cream To Roll Out Ten Digital Assets At Launch

According to the announcement published by Cream, the integration with Polygon would enable users to lend and borrow ten digital assets, such as USDC, USDT, DAI, WMATIC, LINK, and five others.

The crypto lending firm also said its Polygon markets would be incentivized by $MATIC liquidity mining opportunities.

The integration of Cream to Polygon is the latest move by the firm in its expansion plans.

Cream is already being used on Ethereum, Binance Smart Chain, and Fantom. Users on these platforms can easily deposit collateral to borrow supported assets.

The DeFi protocol said the integration with Polygon, which has $8.64 billion in total value locked (TVL), will usher in faster transaction speeds, lower gas fees, and access to additional markets for its users.

Cream’s integration with the scaling solution comes after the firm introduced staking services last month. The company now enables users to stake native assets to its validator nodes in addition to its multi-chain money market services.

Founded in 2012 by Jeffrey Huang, Cream describes itself as a copy of the top lending platform Compound Finance. According to the platform, it also leveraged some codes from Balancer Labs.

But it hasn’t been short of negative news. The protocol has had its share of attacks and losses. Earlier this year, the platform was hit with a DNS (Domain Name Service) attack alongside DeFi platform PancakeSwap.

In its postmortem report, Cream confirmed that its DNS was hijacked and its domain service provider, GoDaddy, compromised. However, the breach didn’t affect funds or smart contracts.

DeFi Projects Continue To Flock To Polygon

The Polygon network has had a meteoric rise this year. The demand for the Ethereum-compatible blockchain network has been visible among institutional investors and DeFi developers alike.

Cream isn’t the only platform that jumped on Polygon of late. Earlier this month, Kyber Exchange announced its integration with the platform, where it launched a $30M liquidity mining program.

In recent times, several DeFi protocols previously launched on Ethereum have shifted base into Polygon’s fast-rising ecosystem.

Meanwhile, the latest development that has emerged from Polygon is the introduction of a general-purpose blockchain network for standalone chains, sidechains, and other Layer-2 solutions called Avail.

Avail is meant to address the scaling challenges single chains on the network face in verifying transactions. Avail will provide them with the needed data guaranteed to make the tasks easier.

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Author: Jimmy Aki