Decentralized Trading Platform Slingshot Launches Open Beta On Polygon (MATIC)

Decentralized exchange (DEX) aggregator Slingshot has launched on Ethereum’s layer two protocol Polygon network, per an official tweet.

Slingshot Chooses Polygon Over Ethereum

According to the rebranded DEX platform (formally DEX.AG), the upgrade will enable users to execute faster trades, pay fewer transaction fees, and get the best prices on Polygon. This is following a run-up of DeFi platforms launching in the past year. Slingshot is in open beta on Polygon.

Slingshot noted that its reason for using the Polygon instead of launching on the Ethereum blockchain was due to high gas fees and slow transaction issues the decentralized finance (DeFi) facilitator experienced. Polygon is a multichain solution that runs alongside Ethereum’s network.

The Ethereum network is the second most active blockchain ecosystem after Bitcoin. In a year that has seen cryptocurrencies gain more followers, the Ethereum network has attracted more developers riding on the decentralized finance (DeFi) and non-fungible tokens (NFT) craze.

But this adoption has brought up issues previously left unattended. First, the insane gas fees users have to pay before executing a trade on the platform.

Another major hiccup has been the network congestion issues prompted by the explosion of NFTs. NFTs, which are predominantly built on the Ethereum network, are unique virtual assets stored on the blockchain. Recent successes in the digital collectibles circle have seen the Ethereum network battle with slow transaction speeds.

These issues have seen the upsurge of layer two protocols like Polygon. Given their swift execution timelines and lower gas fees, developers are now shifting to alternative platforms to access the burgeoning world of DeFi.

Speaking on the recent announcement, Slingshot’s CEO, Clinton Bembry noted that the DEX platform ran multiple pilots on both the Ethereum and Polygon network for some time before settling with Polygon. All trades would now be executed on the Polygon network, while the Ethereum network integration would come much later.

ConsenSys Launches Developer-friendly Tools

Ethereum is aware of the challenges facing its platform and is reportedly preparing to migrate to a proof-of-stake (PoS) protocol in the coming months. According to founder Vitalik Buterin, Ethereum 2.0 will see the end of high gas fees and network congestion and make the Dapps facilitator scalable.

Meanwhile, Ethereum software studio ConsenSys is working to make the Ethereum platform more developer-friendly. According to the blockchain company, it will be adding tools to scaling solution Polygon to make it easier to develop and run dapps on the platform.

The tools named Infura and Truffle would be added to its already extant Ethereum and IPFS offering. Infura would allow developers to connect to the Ethereum network using an application programming interface (API) without running a full node.

Its Truffle tool would help developers build and deploy dapps easily like boilerplate projects.

Read Original/a>
Author: Jimmy Aki

Balancer Labs Launches V2 With Promises Lower Fees, Higher Yields, and Easy Interface

Balancer Labs, a DeFi protocol operating on the Ethereum blockchain, said in a press release that its long-awaited V2 is live.

Balancer’s Governance Execution

The project, which has been one year in development, will see the automated market maker (AMM) switch its governance execution to a community multi-sig.

This will see new signers like Jake Brukhman of CoinFund, David Hoffman with Bankless, Alexander Langer of Inflection, and eight more signers forming the new community.

Alongside this, the upgrade comes with a new clean user interface to make it simpler for users to execute trades. Also, the V2 offering will see users enjoy lower gas fees, faster exchanges, and improved liquidity – major challenges the Ethereum network is hoping to address with its ETH 2.0 launch.

Speaking about the expected gas savings the upgrade will facilitate, Balancer Labs said users would enjoy a 40% gas reduction fee for simple swaps. They will also get a 53% gas reduction fee if they execute trades with internal balances.

Balancer Labs also noted that all liquidity pools would be managed within a single vault in the new V2.

However, Balancer Labs says users should continue using the V1 pool since it provides the best prices. This is until enough liquidity is moved to the new V2 protocol. The development team notes that once enough liquidity is in the latest version, all trades would be routed through its Protocol Vault so users will enjoy low gas costs and better pricing.

Concerning V2 liquidity mining, Balancer Labs said liquidity providers (LPs) would switch to a new and trustless program to mine its native token BAL. This will see LPs stake positions in different pools to receive BAL. Balancer said these pools are divided into three tiers, and each tier slot will be getting a fixed amount of BAL token per week.

DeFi Is Booming

In the run-up to its V2 launch, Balancer Labs highlighted the key contributions of a few industry players and said it had signed agreements with a few. Some of its launch partners are Gnosis which handled its user experience focusing on price, UX, and transparency. Others are Ocean Protocol, Element Finance, Aave, Gyroscope, PowerPool, Enzyme Finance, and Techemy Capital.

AMMs like Balancer Labs are hugely popular in the DeFi sub-sector, given their competitive prices and user-friendliness. In a new report by DeFi data aggregator DeFi Pulse, the UniSwap rival has racked up over $2.77 billion total value locked (TVL) in the last 90 days.

Read Original/a>
Author: Jimmy Aki

DeFi Protocol, Rari Capital, to Become a DAO After the $10 Million Exploit

Over the weekend, another DeFi protocol was exploited for about 2600 ETH, worth more than $10 million.

Rari Capital, whose first product is focused on delivering the highest yield, was attacked on Saturday. The funds were extracted from its Ethereum Pool before the attacker was stopped by pausing the contracts — the loss amounting to 60% of all users’ funds in the Pool.

The team shared in its post mortem that its Ethereum Pool deposits the ETH into Alpha Finance’s ibETH token as a yield-generating strategy.

What the attacker did was flashloan ETH from dYdX, deposit that ETH into the Pool, manipulate the value of `ibETH.totalETH()` by pushing it artificially high, and withdraw more ETH from Pool.

According to Alpha Finance, `ibETH.totalETH()` is manipulatable inside the `ibETH.work` function, and a user of `ibETH.work` can call any contract it wants to inside `ibETH.work,` including the Rari Capital Ethereum Pool deposit and withdrawal functions, but Rari Capital contributors were not aware of it.

To avoid any such issues in the future, Rari Capital will list the protocols it integrates to review their integrations. Also, prevent deposits and withdrawals in the same block or timelock by up to one hour to mitigate the speed of potential attacks.

Furthermore, the team will be checking invariants that shouldn’t need to be checked, internally review the protocols they are looking to integrate with for attack vectors, and enlist more top auditing firms other than Quantstamp and Omniscia.

The project already has another audit planned with OpenZeppelin.

Late on Sunday, the team announced that RariCapital would be becoming a decentralized autonomous organization (DAO), and the team’s allocation of $2 million RGT will be going to it.

As such, “There is no more Rari Capital team. There are only contributors to the protocol,” Jai Bhavnani of Rari capital.

“Decentralization was inevitable, the hack just accelerated evolution,” said Tetranode, an investor in the project.

In the next step, the team focuses on the reimbursement proposals that will go through the voting process.

Read Original/a>
Author: AnTy

Another BSC-based DeFi Protocol gets Exploited for Over $30 Million

Another Binance Smart Chain (BSC)-based DeFi Protocol Gets Exploited for Over $30 Million

Spartan protocol team ensures that they will rebuild with a focus on review, unlike Uranium Finance which, after the $50 million exploit, said the project won’t be reborn and is currently activating the distribution of 300k.

Over the weekend, yet another BSC-based DeFi protocol got exploited.

On Saturday, Spartan Protocol, a project that incentivizes deep liquidity pools for leveraged synthetic token generation, reported an attack that resulted in a loss of more than $30 million.

Its native token SPARTA took over a 40% drop as a result of the exploit but had since then recovered to $1.65, just about 25% down from its ATH of $2.25 from mid-February.

The next day, blockchain security company PeckShield Inc. released an analysis of the attack stating it was due to a flawed liquidity share calculation in the protocol, which was exploited to drain assets from the pool.

As for the technical part of the attack that involved a number of operations to prepare the vulnerable pool and then manipulate it to drain funds, the attacker first borrowed a flashloan from PancakeSwap with 10K WBNB, which was returned at the last step with 260 WBNB as the flashloan fee.

The vulnerability stems from the fact that the liquidity share calculation calcLiquidityShare() is querying the current balance, which can then be inflated for manipulation, noted PeckShield Inc.

Spartan Protocol team ensured that they would rebuild with a focus on reviews. It also mentions that their code that contained the flaw was already audited by CertiK.

While sharing this, it further said that “Sparta is innovative code, built from scratch, it is not a clone of anything,” amidst the growing criticism around the DeFi projects built on BSC copying other projects that are already running on Ethereum.

“Sparta does not copy a single line of SNX code, and the Sparta community feel the brand is sufficiently differentiated, un-owned, and unique to the BSC community,” it stated.

Earlier last week, another BSC-based DeFi project, Uranium Finance, was exploited for $50 million despite the project being audited by BSC Gemz, which didn’t pick up the critical vulnerability.

The exploit was possible due to an update of the codebase for v2, which changed the swap fees from 0.20% to 0.16%.

Unlike Spartan Protocol, Uranium Finance said they are not releasing v3, adding, “We will not be trying to make this project reborn again, doing so is not possible under these circumstances.”

Currently, they are activating the distribution of less than 300k from the bonus money pot while asking users to remove liquidity from pools.

Read Original/a>
Author: AnTy

Bender Labs’ WRAP Protocol Brings Ethereum ERC-20 & ERC-721 Tokens to Tezos

Bender Labs’ WRAP Protocol Brings Ethereum ERC-20 & ERC-721 Tokens to Tezos

  • DeFi developer Bender Labs rolls on a decentralized bridge that connects Ethereum and Tezos blockchains.

In an official announcement, Bender Labs revealed the release of wrap protocol (WRAP), a decentralized bridge that now enables the transfer of ERC-20 and ERC-721 tokens from Ethereum to Tezos blockchains. This means that Ether (ETH) holders are free to interact with the Tezos platform.

Token wrapping has gained momentum in the recent past as a popular way of linking users of different blockchain networks. The best example is Wrapped Bitcoin (WBTC), an ERC-20 form of Bitcoin found on the Ethereum blockchain.

Importantly, wrapped tokens are created with the capacity to maintain the complete characteristics of the original tokens comprising the price. For instance, a Wrapped Ethereum (WETH) is redeemable as a standard Ethereum (ETH), locked within the native blockchain.

According to the announcement, the Wrap protocol will allow clients to transfer ERC-20 and ERC-720 into FA2 tokens found in the Tezos blockchain network. The ERC-20 can be described as the technical standard upon which most common Ethereum tokens have been developed, such as Uniswap (UNI), Maker (MKR), Chainlink, Dai, and others.

image1

On the other hand, ERC-721 is used for NFTs, non-fungible tokens which have gained traction among crypto enthusiasts and worshippers. NFTs can be described as cryptographically unique tokens representing virtual content like music and other forms of art. As opposed to other tokens, NFTs do not support interchangeability; therefore, they can easily be used to create scarcity for the virtual content.

To transfer Ethereum-based tokens towards the Tezos network, the WRAP protocol forms wTokens, which is a representation of both ERC-20 and ERC-721 tokens. Bender Labs states that wTokens worth will be equal to the original assets and can be used comfortably in the Tezos network.

“At the center of WRAP is the $WRAP token, which is both an ERC-20 and an FA2 token,” said the developers.

According to the announcement, a clear use case in transferring Ethereum tokens to various blockchains is the ever-growing decentralized finance (DeFi) space. Most of the Defi business takes place within the Ethereum network, but high transaction fees lead to clients looking for alternatives.

Read Original/a>
Author: Joseph Kibe

Liquidity Mining Comes to Lending Protocol Aave V2

Liquidity Mining Comes to Lending Protocol Aave V2

This latest feature in Aave, which currently accounts for 17% of the crypto lending sector with Compound in the lead with 53% share followed by MakerDAO at 30%, could be expected to “kickstart DeFi Summer 2.0.”

Liquidity mining is officially coming to lending protocol AAVE as Aave Improvement Proposal 16 gets passed with 62% support.

Introduced last week, the AIP introduces liquidity mining rewards for Aave V2. As per this proposal, 2,200 Staked AAVE (stkAAVE) will be distributed per day, representing around $1 million in rewards distributed daily to lenders and borrowers.

stkAAVE are rewarded instead of AAVE in order to align long-term incentives, disincentivize speculative farmers, and allow users to earn an underlying yield on top of the AAVE they earn.

According to the proposal, this will give LPs more governance weight up front and secure the protocol by increasing the amount of AAVE staked in the Safety Module.

These rewards will be allocated on a pro-rata basis across the markets based on the dollar value of the borrowing activity in the underlying market.

Estimated APR is, for DAI 12.67% – 37.6% on supply and borrowing respectively, on USDT 14.25% – 41.7%, on USDC 15.87% – 43.2%, on ETH 5.65% – 1.65%, and on BTC 6.25% – 1.85% ETH 11.54% Ethereum / USD ETHUSD $ 2,534.69
$292.5011.54%
Volume 34.96 b Change $292.50 Open $2,534.69 Circulating 115.63 m Market Cap 293.09 b
5 h Tether Surpasses $50 Billion Market Cap As Coinbase Pro Adds USDt 7 h Ethereum Targeting October for The Merge through Scaling Project ‘Rayonism’ 8 h Liquidity Mining Comes to Lending Protocol Aave V2
BTC 10.90% Bitcoin / USD BTCUSD $ 53,972.62
$5,883.0210.90%
Volume 58.08 b Change $5,883.02 Open $53,972.62 Circulating 18.69 m Market Cap 1.01 t
5 h Social Investment Network, eToro, Adds ‘Bitcoin Value Chain’ Stock Portfolio Tracking 5 h Tether Surpasses $50 Billion Market Cap As Coinbase Pro Adds USDt 8 h Liquidity Mining Comes to Lending Protocol Aave V2

The motivation behind introducing liquidity mining rewards is to grow lending and borrowing activity in targeted markets, now that almost every major DeFi protocol is launching a liquidity mining program.

Rewarding AAVE to users also leads to broader distribution and protocol decentralization, ti said.

In response to this, the price of AAVE surged more than 20% to $387. The $4.86 billion market cap coin is currently up 330% YTD.

According to some, this AIP could turn out to be “monumental” for DeFi and very well be the “catalyst to kickstart DeFi Summer 2.0,” just like Compound Finance’s liquidity did the original DeFi summer.

“This comes together to form a reasonable narrative for why ETH-based DeFi apps are due a re-rating,” said Wangarian, Capital allocator at DeFiance Capital.

Aave currently accounts for 17% of the lending sector in the crypto market, with Compound in the lead, having captured 53% of the market share, followed by 30% by MakerDAO. COMP 1.66% Compound Coin / USD COMPUSD $ 0.00
$0.001.66%
Volume 49 Change $0.00 Open $0.00 Circulating 53.73 b Market Cap 48.71 K
8 h Liquidity Mining Comes to Lending Protocol Aave V2 1 w Citibank Covers DeFi, says Open Financial Platform Enables ‘Greater Innovation and Competition’ 2 w Total Value Locked (TVL) in DeFi Surpasses $100 Billion; Revenue is Ready to Hit $1 Bln
MKR 6.02% Maker / USD MKRUSD $ 4,016.19
$241.776.02%
Volume 297.03 m Change $241.77 Open $4,016.19 Circulating 995.24 K Market Cap 4 b
8 h Liquidity Mining Comes to Lending Protocol Aave V2 1 w Citibank Covers DeFi, says Open Financial Platform Enables ‘Greater Innovation and Competition’ 2 w MakerDao Proposes D3M to Integrate with AAVE & Expand Stablecoin DAI Across DeFi

The number of outstanding loans has reached ATH of ~ $10b across Aave, Compound, and MakerDAO.

The lending sector went parabolic during Q1 2021, with DeFi’s most popular lending platforms reaching the highest ever $25 billion.

Read Original/a>
Author: AnTy

Indexing and Querying Protocol, The Graph (GRT), Launches A Micro-Transaction Solution, Scalar

Indexing and Querying Protocol, The Graph (GRT), Launches A Micro-Transaction Solution, Scalar

The Graph, a decentralized indexing and query protocol, announced the launch of Scalar, a micro-transaction scalable solution for fast and cheap fees on the network.

Announced Wednesday, Scalar, built on the Connext Vector protocol, will provide micro-transaction solutions on The Graph network to reduce the fees and increase scalability when querying on the protocol. Additionally, Scalar introduces incentives – paid in its native GRT token – for The Graph’s node operators and data providers.

The micro-transaction solution is developed by The Graph Foundation and Edge & Node, a software development company specialized in building and using Connext, which is a  peer-to-peer, cross-chain liquidity network specializing in micro-transactions.

Billed as the “indexing and querying layer of the decentralized web,” The Graph connects decentralized finance (DeFi) applications to different blockchains. The platform’s querying service allows users (DApps) to get data from other blockchains to enhance their functionality – especially DeFi projects. Top DeFi projects such as Uniswap (UNI), AAVE, and Synthetix (SNX) and blockchains such as Solana (SOL) have turned to the platform to link data from other blockchains.

The Graph’s indexing and querying service has grown exponentially over the past year as the DeFi, and non-fungible token (NFT) market took center-stage in the crypto universe. According to the post, The Graph hosted query service has exceeded 14 billion queries in February alone and 19 million in March – representing a 10,000% increase from last year as the crypto world turns to Ethereum-based DApps.

With the rising number of queries, The Graph turned to Scalar micro-transactions to reduce the average load time for DApp users, which could blow out of proportion on current systems. A statement from the dev team reads,

“Using Scalar, node operators have a new way to monetize their infrastructure through query fees paid in GRT, and data providers can be paid directly for making useful data available for apps without paywalls and ads.”

The scalar solution uses state channels to aggregate and compress transactions before being finalized on-chain. In the post, The Graph Foundation states they have been working and researching heavily on how state channels work before starting the development of Scalar two years ago.

“This is the first time state channels will be used in broad-scale production,” Tegan Kline, co-founder and business leader at Edge & Node, stated.

“Scalar is this major new building block for infrastructure in the decentralized applications space. We’ll be using this within The Graph ecosystem to be able to handle the billions of queries that we’ve seen on The Graph’s hosted service, in The Graph’s decentralized network.”

Read Original/a>
Author: Lujan Odera

Band Protocol Integrated on Google Cloud to Enhance Financial Time Series Analysis

Band Protocol Integrated on Google Cloud to Enhance Financial Time Series Analysis

Chainlink rival Band Protocol is joining the Google Cloud public data network to enable accurate financial time series data analysis.

Decentralized oracle service, Band Protocol, is integrating to Google Cloud in a bid to “enable immediate and accurate analysis of financial time series data,” a blog post by Kevin Lu, head of business development at Band reads.

Band Protocol oracles, specifically the Band Standard Dataset, is now live on Google BigQuery, a fully-managed, platform-as-a-service cloud data warehouse. The platform is built to enables scalable analysis over petabytes of data through its machine learning mechanism.

“Google Cloud Public Data has a wealth of data available for unique analysis.”

“This is especially interesting for real-time financial time series data using novel approaches to Machine Learning.”

Band’s data sets will enhance analysis on financial time series data, which requires a ton of real-time data, by connecting decentralized, trustable, and secure oracles to BigQuery.

Lu believes the partnership with Google Cloud will expand the possibilities that Band Protocol offers, adding they are looking for more partners.

“With Band Protocol oracles fully integrated into Google Cloud Public Data, this is the first of many use-cases we are exploring with partners to bridge traditional enterprises and blockchain applications.”

“Our focus is to continuously and rapidly expand the support of data available on BandChain — pushing the use-cases far beyond just Web 3 alongside many enterprises.”

Read Original/a>
Author: Lujan Odera

Keep Network to Launch An Updated Bitcoin to Ethereum Bridge, tBTC Protocol V2

Keep Network to Launch An Updated Bitcoin to Ethereum Bridge, tBTC Protocol V2

The Keep Network has released more details of tBTC, a Bitcoin bridge on Ethereum. Keep Network developer Evandro Saturnino disclosed this in a blog post.

Keep Network Unveils tBTC V2

Saturnino made it known that the network considered different changes to address tBTC past issues with collateralization.

The developer said that while the tBTC v1 relies on a 200% outside collateral, it has struggled to scale without more ETH into the network, despite being on top of $300M Total Locked Value (TVL). He said the system works perfectly, but the economic constraints are still present.

This second iteration of tBTC (v2) is expected to require stakers to only lock up Keep rather than both Keep and Ether (ETH), alongside introducing changes to its wallet-generation mechanism.

tBTC is a fully Bitcoin-backed ERC-20 token pegged to the price of Bitcoin. It facilitates Bitcoin holders acting on the Ethereum blockchain, accessing the decentralized finance (DeFi) ecosystem, and earning with their Bitcoin.

The network is fully trustless, using a system of “signers” selected by a random beacon to safeguard the deposited BTC. tBTC can be converted to BTC, and vice versa, at any time, with no intermediary needed to sign off.

According to Saturnino, this v2 of tBTC would greatly decrease the staking assets’ collateral ratio.

He added that insurance coverage pools would be used to protect against malicious validators to neutralize risks to the peg. He described the coverage pools as perfectly suited to ensure against fraud in tBTC v2.

tBTC And Existing Bitcoin Tokenized Solutions

First announced in April last year, tBTC was built as an application to allow trustless storage of the Bitcoin-backed tBTC tokens. It was officially launched in May but had issues with a smart contract bug, after which it relaunched in September 2020.

The developer said the team had learned a lot since the protocol launched the second time.

The tBTC protocol works on both the Bitcoin and Ethereum public blockchains, with users locking up BTC so that nodes in the Keep network can mint tBTC while staking 150% of the BTC’s value in ETH.

Bringing Bitcoin to Ethereum is considered to be an exciting prospect by many as the tokenization of Bitcoin gets increasingly popular. It can be split into custodial and non-custodial. Popular custodial solutions like Wrapped BTC (wBTC) are one of the largest, while non-custodial solutions like renBTC have followed closely since its launch last year May.

Meanwhile, the Keep network’s tBTC is still trying to gain ground among DeFi users.

Read Original/a>
Author: Jimmy Aki

Billion Dollar Stablecoin Fei Protocol Struggles As Token Drops Below USD Peg

Billion Dollar Stablecoin Fei Protocol Struggles As Token Drops Below USD Peg

Barely days after the stablecoin project Fei Protocol launched, it appears to be struggling—so much so that its 1:1 USD pegged token has dropped well below its targeted $1 value. Currently at $0.7916.

Fei in Free Fall

The stablecoin project, meant to be algorithmic and without volatility, lost its peg to the U.S. dollar this week. The asset was down by almost 80% at a time.

This caused an uproar on social media, with users complaining about the project and others suggesting solutions.

Compound (COMP) founder Leshner stated that the protocol was in this state due to a bug.

“Folks are watching Fei, a project that raised $1.3B, struggle at launch. It raised way more ETH than needed; most buyers were looking to immediately sell FEI back (peg pressure); then, to top it off, a bug disabled the primary stability mechanism. Not a recipe for stability.”

Meanwhile, the company has responded via its Twitter account. It disclosed that there was a vulnerability through its bug bounty program. This made the development team suspend mint rewards on Fei buys to ensure the protocol and PCV were secured.

Mint rewards are incentives users who buy Fei get to help it return its value to the dollar.

Fei Protocol added that the protocol is still overcollateralized, meaning more cryptocurrency collateral backing the set of Fei tokens. It assured users that the token’s value would return while also thanking users for their suggestions on solutions.

Fei Protocol Fighting Stablecoin Issues

Backed by many high-value investors, Fei Protocol aimed to create a stablecoin protocol that would outrightly buy assets with its token, rather than holding them as collateral for loans.

Fei had pointed out the obvious issues in already established stablecoins that were centralized and controlled by corporations with the focus of fighting them.

The stablecoin introduced the model called ‘Protocol Controlled Value’ (PCV) which means when users deposit collateral, the protocol owns and manages it so that liquidity cannot just be pulled out. The PCV is a subset of TVL (total value locked), in which a platform outright owns the assets locked into the smart contracts.

However, it appears Fei Protocol did not anticipate the high demand it received.

Read Original/a>
Author: Jimmy Aki