Yet Another Balancer Attack for ‘Unclaimed’ COMP; DeFi Liquidity Provider to Reimburse Hack Victims

It hasn’t been 24 hours since the news about a $500,000 hack on Balancer came that a new attack has claimed $2,300 worth of the hot Compound tokens (COMP).

Hao, a hacker and engineer at DeBank, a DeFi wallet took to Twitter to share how this time as well, someone used Andreessen-funded dYdX to flash loan and drained, yes again, unclaimed COMP stored in several pools of Balancer, an automatic market maker.

The hacker explained that the contract flash loaned some tokens from dYdX to mint cToken from these funds. Then they Uniswap v2 to flash loaned some COMP.

The contract joined COMP/cBAT/cUSDT pool to trigger Compound to send unclaimed COMP to this balancer pool. After syncing COMP balance, the contract withdrew from the balancer at an advantage and continued to do the same for other pools.

After getting all the extra COMP, it repaid Uniswap and dydx and made an exit and swapped COMP for ETH in a normal Uniswap V2 trade.

However, @FollowTheChain said the “unclaimed COMP” is just a tiny fraction of COMP that has accumulated since the last movement of each cToken that happened a few minutes before.

According to Balancer Labs, this attack wasn’t like the one from yesterday either.

Amidst this came the good news, that Balancer Labs will be reimbursing all the liquidity providers who lost funds in yesterday’s attack.

It will also pay out the “highest bug bounty available” to Hex capital, who alerted about this vulnerability to balancer Labs in May.

“This is a major issue in crypto today – creating bug bounty programs and then ignoring the results + refusing to pay out. We need to do better,” said Hex Capital.

Market Unaffected

Yesterday’s attack involved two pools of the Balancer that contained deflationary tokens STA and STONK, tokens with transfer fees, worth more than $500,000 getting drained by a hacker.

The attack happened in two separate transactions which were 30 minutes apart. And only the pools with a token with transfer fees were affected by the exploit.

DeFi aggregator 1inch in its official report said the attacker was a “very sophisticated smart contract engineer with extensive knowledge and understanding of the leading DeFi protocols.”

Not only was he organized and prepared in advance but also used Tornado Cash, a privacy-focused Ethereum mixer, to get initial funds that hid his source of Ether.

It reported that the attack on one of the Balancer Pools was caused by a complex transaction that the hacker sent to the Ethereum mainnet. Then, with another transaction, the hacker drained another Balancer Pool.

The address with the stolen funds currently has about 601 ETH worth about $133,823.

In its official report on the incident, Balancer Labs reported that it wasn’t aware that “his specific type of attack was possible” which now came to be untrue.

However, they have been warning about the unintended effects of ERC20s with transfer fees in the protocol. As such, STA wasn’t included in the recently put together mining whitelist of BAL.

Now, transfer fee tokens will be added to the blacklist and will continue to audit, the third planned audit is starting soon, and review the protocol.

However, the market seems unaffected for now, as the total value locked in Balancer is $115 million, down from the all-time high of $117 million just a day before, as per DeFi Pulse.

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Author: AnTy

Bitcoin Fair Value Less than $7,000 as per “Dire” On-Chain Stats

The first half of June hasn’t been a good one for bitcoin. Opening the month around $9,500 to see a pump and dump of more than a thousand dollars, the world’s leading cryptocurrency has been slowly making its way downwards that had it falling below $9,000.

Currently, BTC/USD is trading around $9,100, down 3.08% while managing $1.6 billion in real volume. Popular stablecoin USDT meanwhile is recording over $2.1 billion in volume in the past 24 hours.

These losses came despite the Federal Reserve supporting prolonged quantitative easing and keeping the interest rates unchanged at 0% to at least 2022.

“The USD is sitting on a major support line and will likely start a big move down given the recent Fed statement supporting prolonged QE. This is confirmed by strength in commodities and commodity-related assets. BTC setting up for a breakout is another confirmation,” tweeted Koyfin.

However, the US stock market is recording losses which could be because of the coronavirus cases surpassing 2.1 million in the country and 117,858 people losing their lives to it. Also, the Fed has warned of an ‘extraordinarily uncertain’ path to recovery.

Following stocks, bitcoin is also on the downslide. “I think it’s definitely part of the broader sell-off that we also saw in equities last week,” said Vijay Ayyar, head of business development with crypto exchange Luno.

“We tapped liquidity at the $10,000 level and are now coming back down. I expect $8,500 to hold, but if not we’re looking at $7,700 and then $7,100.”

A larger correction potentially at hand

Bitcoin exchange inflows are also increasing amidst this drop in price. This could mean people are looking to sell their BTC at higher prices in anticipation of a drop in price, although in the long term, exchange wallets are decreasing.

With price breaking down, it needs to be seen if miners will hold onto their inventory which they have already been selling more than they have been mining, as per MRI.

“Corn is hanging onto support by a bees dick here, my stop below the wick, if it loses that, it might get ugly and will have to go flat and re-evaluate,” said market analyst Benjamin Blunts.

Trader Altcoin Psycho sees the flagship cryptocurrency going even lower. We might even get to see $8,000 yet again.

Bitcoin has first support present at $9,200 and second level of support at just above $8,800. If the both are lost, trader Credible Crypto says, “a larger correction potentially at hand.”

On top of this, on-chain stats are not looking good either. According to Charlie Morris, founder of ByteTree, the fair value of Bitcoin currently is less than $7,000. He said,

“Bitcoin on chain stats are dire. 1 week network velocity down to 454%, 5wk 556%. Tx value down, av tx size down, fees down, MRI shot to pieces. Why the lack of interest? Can’t see price holding up. Fair value <$7k.”

Whales Accumulating

But, with BitMEX co-founder and CEO Arthur Hayes taken to tweet, “Spoos and bitcoin tanking at the same time. What a shame, take that JPOW wampum and put it to good use,” Crypto Twitter believes it to be a “temporary bottom signal.”

Moreover, bitcoin whales are seeing this as an opportunity to buy the dip. In the past year, the number of bitcoin whales holding at least 1,000 BTC has increased by nearly 9%. Bitcoin whales started accumulating in 2020, with a prominent spike in this recorded after the March sell-off.

Over 3 million bitcoin addresses are now holding more than 950 BTC.

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Author: AnTy

Coinbase Commerce Crosses $200,000,000 In Crypto Payments Since Launch

Covid-19 hasn’t kept consumers from using bitcoin (BTC) as a means of payments for goods and services according to a merchant transaction report from Coinbase Commerce.

A Coinbase Commerce report shows that on 3-26-2020, clients made bitcoin transactions that helped the company surpass a goal of $200 million in transactions since it launched the payments portal. The results come from an enormous network of eight thousand retailers that accept cryptocurrencies together with other methods of payment.

BTC Preferred Over Other Cryptocurrencies

The news is great for those who encourage the adoption of Bitcoin (BTC) and cryptocurrency altogether. The COVID-19 crisis doesn’t seem to have affected the way people use digital money. However, the situation is not the same for merchant crypto payments, as John Zettler, Coinbase Commerce product’s lead, said there hasn’t been too much activity in this area in March.

He added that money comes very often in BTC but didn’t mention the exact usage breakdown of crypto-by-crypto. People seem to prefer BTC more than other digital currencies. Here are his exact words about how customers at Commerce feel about this digital currency:

“Merchant customers often tell us it’s the crypto they’re most familiar with and the one they trust the most.”

USDC Is Also Growing

Coinbase is also witnessing an increase in stablecoin based payments, especially in its own USD coin that’s dollar-pegged, USDC. Zettler mentioned USDC is leading the growth pack and is expected to have a material growth through Q2 and Q3 of 2020. Support for USDC was added by Commerce back in May 2019.

Zettler further said that Coinbase is working to improve Commerce’s features so that merchants’ demands are being met. The service was launched for refunds and with the intention to normalize the crypto e-commerce space. At the moment, crypto is only an insignificant e-commerce method, with a $3.5 trillion sales marketplace in 2019.

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Author: Oana Ularu

Altcoins Forging Fresh Highs While Bitcoin Remains Stagnant

  • A “very positive sign” that market is consolidating the gains but hasn’t retreated much
  • But “less volatility, less action, equals less excitement and less trades”
  • Altcoin index “bullish AF,” while larger-cap cryptos outperforming, smaller caps are flat

The crypto market is experiencing a green wave. Bitcoin might be in the red, hovering around $8,600 but is up just over 18% to date in 2020.

The crypto market is currently testing the highs to see as Mati Greenspan, founder of Quantum Economics in his daily newsletter explains “if this rally has enough steam to breakthrough into something bigger.”

Though the market has started to see some flecks of red, the fact that we are still consolidating the gains made last week and hasn’t retreated by much is a “very positive sign,” said Greenspan.

However, what can’t be ignored is the declining volume. Last week, Bitcoin managed the daily trading volume of over $1 billion which has now dragged down to less than $500 million on top ten exchanges with real volume.

So, while sentiment remains good exchange volumes are trailing off with “less volatility, less action, equals less excitement and less trades.”

But Greenspan notes that “while bitcoin remains stagnant, we have seen a few altcoins cautiously forging fresh highs.”

As can be seen, while Bitcoin stayed still over the weekend, altcoins like Tezos, Cardano, and Stellar Lumens made slow but steady gains.

As Greenspan questions aloud, “Is this the start of another altseason?”

Alt-Season or Not Yet?

There are still 10 days let in the first month of 2020 but altcoins are the ones leading the market.

Among the top 10 cryptocurrencies, Bitcoin SV (BSV) is at the top with 232% gains YTD that reached a new all-time high. BSV is followed by the cryptocurrency from which it was hard forked, Bitcoin Cash. BCH is up 64% in 2020 to date trading at $340.51, a bit higher than BSV’s current value of $314.60.

Other big gainers have been Dash which is up by 160.35%, Bitcoin Diamond (BCD) 114%, Bitcoin Gold (BTG) 107.7%, Ethereum Classic (ETC) by 96.62%, Zcash (ZEC) 86.67%, DigixDAO (DGD) 81.88%, Civic (CVC) 68%, Horizen (ZEN) 60%, and Augur (REP) 50.31%.

Analyst Benjamin Blunts notes, the altcoin index is “bullish AF.”

Analyst Ceteris Peribus notes 40 of the altcoins with market capitalization more than $50 million, excluding stablecoins, are up 25% on an average. In comparison, 29 altcoins are down on an average of 14%.

While larger-cap cryptocurrencies are outperforming, smaller caps are flat or underperforming. This is why the analyst is “Not close to saying alts are back yet.”

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Author: AnTy