The Nolus DeFi Lease provides up to 150% financing on the initial investment with a lowered margin call risk and access to the underlying leveraged assets.
Nolus, an interoperable application on Cosmos, has secured $2.5 million in pre-seed and seed funding to tackle inefficiencies in DeFi money markets.
The recently concluded $20 million valuation seed funding is backed by Dorahacks, Everstake, Cogitent Ventures, Token Metrics Ventures, and Autonomy Capital, among others, and will allow Nolus to fully complete the technological backbone and further expand the platform both within and outside the Cosmos ecosystem. The Advisory Board members Zaki Manian, Strangelove, and Shane Molidor will ensure Nolus solidify its cross-chain presence.
The novel DeFi Lease solution by Nolus unlocks the full potential of crypto money markets by reducing the industry’s steep over-collateralization requirements, resulting in significantly improved capital efficiency and much more favorable lending options for users. The Nolus DeFi Lease provides up to 150% financing on the initial investment with a lowered margin call risk and access to the underlying leveraged assets through whitelisted yield-bearing strategies. With the added support of liquid staking derivatives, the Nolus protocol will create a cornerstone use case for LSDs for the Cosmos ecosystem in the form of self-repaying loans.
About Nolus
Nolus defines a money market between lenders looking to earn yield on deposited stablecoins and borrowers looking to amplify holdings with more assets than their current equity at lower risk and retained ownership.
The Protocol utilizes a semi-permissioned PoS blockchain built using the Cosmos SDK and a WASM smart contract engine that executes in an isolated sandbox model focused on interoperability, security and performance. Interoperability itself is at the core of Nolus’ offering as the Protocol utilizes IBC and Interchain Accounts to tap into a diverse set of liquidity hubs without creating fragmentation across chains.
After months of testing, Nolus will open its public mainnet in May.
Last week, Vitalik Buterin, Ethereum (ETH)’s co-founder, voiced his disapproval regarding the emergence of cross-chain bridges, citing security vulnerabilities due to their interdependency. In the days that followed however, developers working on cross-chain technologies largely dismissed his skepticism. In a statement to Cointelegraph, Kadan Stadelmann, chief technology officer of atomic swap blockchain Komodo, responded to Vitalik’s critique:
“What we ultimately need is true decentralization. For example, instead of relying on one or two trusted bridges that have a single point of failure, it would be better to work towards a future where we have numerous bridges that are secure, trustless, and censorship-resistant.”
Erik Ashdown, head of ecosystem growth at data analytics and blockchain indexer Covalent, concurred:
Vitalik is a smart cookie who’s clearly done his thinking about the state of bridges. However, his saying that bridges are a bad idea and won’t work is the equivalent of the Bitcoin community in 2015 saying Ethereum and smart contracts were a bad idea.
Stadelmann further reiterated that “cross-chain interoperability is the future” and that both multi-chain ecosystem networks like Polkadot (DOT) and Cosmos (ATOM), as well as atomic decentralized exchanges, could disrupt the economic size of Ethereum. In supporting the claim, Stadelmann cites expensive gas fees on the blockchain as to why users would prefer alternatives.
Nevertheless, there are unresolved issues surrounding cross-chain blockchains. Ashdown cites one example of the composability of a smart contract, where sending a token across one bridge will not have the same contract address if it crosses from another bridge. This means that anyone else sending a token across another bridge will not be able to interact with the original tokens sent from the main bridge.
Cosmos is one of the fastest-growing blockchain networks. Crypto Briefing interviewed Peng Zhong, who oversees the Tendermint team incubating the Cosmos ecosystem.
Cosmos is currently moving toward connecting more blockchains with the IBC Protocol and deploying new dApps.
Besides educating developers on Cosmos, Tendermint is focusing on leading projects like Gravity DEX and Emeris.
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Crypto Briefing catches up with Tendermint CEO Peng Zhong, who oversees the core development team that built the critical components of the Cosmos blockchain.
Insights on the Cosmos Ecosystem
While Ethereum is currently the world’s most used blockchain, its widely-documented scalability issues have helped other networks surge in recent months. Cosmos is one of the networks to have seen increased adoption and market value. Its ecosystem has also seen rapid growth over the last few months.
Cosmos is a fast-growing network that describes itself as “the Internet of blockchains.” It is arguably one the most developed blockchains aside from Ethereum, currently securing more than $177 billion worth of digital assets.
The project’s roadmap dates back to 2015, long before most other leading blockchains on the market today had launched. It was developed by the software architects Jae Kwon and Ethan Buchman. Their idea was to enable the transfer of assets and information between blockchains that are isolated from one other.
Kwon and Buchman were the two founders of Tendermint, the core team responsible for developing the software architecture for what they described as an Internet of interoperable, application-specific blockchains. Over the next few years, Tendermint wrote the critical systems for the Cosmos network. They included the Cosmos consensus engine Tendermint Core and the software development kit (SDK), a framework for building application-specific blockchains.
In 2019, Tendermint launched their interoperable blockchain on mainnet working alongside a host of top contributors, including Althea, ChainSafe, Informal Systems, Interchain, Iqlusion, IRIS, Regen, and Sikka. However, it wasn’t until two years later that the network started to realize its goal of achieving cross-chain interoperability. In March 2021, Cosmos launched its biggest update to date: Inter-Blockchain Communication (IBC).
With IBC, Cosmos is fulfilling its vision of being “the Internet of blockchains” by authenticating cross-chain communication. Thanks to IBC, blockchains like Terra, Kava, Thorchain, Juno, and Secret Network, which all use the Cosmos SDK, can securely exchange tokens and data with one another.
To date, Cosmos has integrated 22 separate blockchains, with many more planned in the coming months. As the project expands its ecosystem of cross-chain interoperable networks, Tendermint continues to play a key role in the project’s development. One of Tendermint’s key figures is the Chief Executive Officer Peng Zhong. Crypto Briefing sat down with Zhong to learn more about the fast-expanding Cosmos ecosystem its major developments on the horizon.
Crypto Briefing: What have been the most notable developments in the Cosmos network to date?
Peng Zhong: We have been building the Cosmos network for a long time. The whitepaper was released in 2016, and development started the following year. However, the Cosmos Hub didn’t launch until 2019, and I would say that activity did not pick up until the launch of the IBC protocol on the Cosmos Hub in March 2021. A few months later, there are now 18 projects that support the IBC protocol, the latest being Terra. These are all projects with tens to hundreds of millions of dollars secured on their respective blockchains. After IBC, assets from all these chains can flow across each other seamlessly. Many other projects will be integrating IBC in the next few months. That should double the amount of IBC-connected blockchains from 18 to over 40.
CB: Given that so many contributors have come forward in the last few years, what is the Tendermint’s specific role in the Cosmos ecosystem?
PZ: We do everything from base-level infrastructure to building consumer-end applications for everyday use. You can compare us to Consensys, one of the largest companies in Ethereum, which also does all sorts of things for the blockchain. We lead engineering teams for some of the most promising dApps building on Cosmos like Gravity DEX, Emeris, and Starport. In addition to our core building strengths, we are focusing on marketing efforts. We are trying to bring as many developers as possible to the Cosmos ecosystem.
CB: Now that Terra has enabled IBC, what kind of synergy goes on between the network and Cosmos?
PZ: Terra’s recent integration of IBC has allowed Cosmos users to transact with Terra. In return, Terra dApps can use assets from a broader Cosmos ecosystem. You can go to Gravity DEX or Osmosis to exchange ATOM for LUNA or swap Cosmos tokens for UST stable coins. It’s a great way for Terra to acquire new users. The user base of Terra can use Cosmos infrastructure like wallets and so on.
CB: Binance and Crypto.com have both created their own Tendermint-based blockchains. How is Cosmos integrating with these large-scale crypto exchanges?
PZ: Binance runs a large blockchain built on the Cosmos SDK. It’s valuable, widely used and hosts BNB, one of the top crypto assets, along with hundreds of other assets. But Binance does their own thing. We would love them to upgrade the Binance Chain to support IBC. This would allow BNB to start flowing through Cosmos or Terra. But they have their priorities at play. As far as Crypto.com goes, they are heavily invested. Their exchange token Crypto.com coin is IBC-enabled and available with a Gravity DEX or Osmosis to trade. They are also developing their own EVM-compatible Cosmos blockchain called Cronos.
CB: Are there plans to implement the Inter-Blockchain communication (IBC) protocol outside Cosmos?
Peng Zhong: The development of IBC has always targeted blockchain agnosticism. For now, IBC implementation is meant for Cosmos SDK-based blockchains. But there are efforts to deploy IBC between Cosmos and Polkadot chains, between Cosmos and Avalanche chains, as well as integrating the protocol on Solana. It will certainly be compelling for other networks to access the value of all the other chains connected with IBC, which means tens of billions of dollars of liquidity.
CB: What are some of the most notable Cosmos-based projects Tendermint has incubated?
PZ: Some of our most important projects include Gravity DEX and Emeris—the first cross-chain token transfer interface for Cosmos. Gravity is similar to Uniswap. As a liquidity provider, you deposit two tokens and earn swap fees. Gravity V2, which is currently in development, will have multiple token pools, limit order features, and an interface that will display order books. The team has also planned a farming module to earn extra yield. Emeris is another important ecosystem component. Emeris is intended to be the portal to the Cosmos ecosystem and enables end-users to interact with Cosmos. The platform aggregates the various Cosmos dApps in one place.
CB: As Osmosis is currently the leading decentralized exchange on Cosmos, how would you compare it the Gravity DEX?
PZ: The Gravity DEX is secured by more than $10 billion on the Cosmos Hub, whereas Osmosis is secured by less than that—as much as ten times less. Everything on the Cosmos Hub goes through rigorous testing and audits as there is so much value at stake. Upgrades and new features take a long time. Gravity DEX was launched without farming incentives or multi-token pools. These features will only come into play toward the end of the year. As Osmosis can move faster, it already supports these features. But its security is arguably lower than the Cosmos Hub. There is healthy competition between the two, but they are not targeting the same market. They both do different things.
CB: One of the most notable developments of the year has been the NFT boom. What’s happening in the NFT niche on Cosmos?
PZ: There are many ongoing efforts when it comes to NFTs on Cosmos. There are NFTs on Terra’s Juno Project as well as many other blockchains on the network. There’s even a blockchain dedicated to NFTs. It’s called Pylons and was incubated at Tendermint. While it is still heavily in development, Pylons is expected to be the native NFT engine for Cosmos. The dApp essentially allows you to start building NFT marketplaces without requiring programming skills.
Disclosure: At the time of writing, the author of this feature owned ETH, SOL, and several other cryptocurrencies.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Duelist King has raised over $1 million after attracting investment from a number of renowned private equity firms.
The game, which is built on Binance Smart Chain (BSC) and Cardano and supported by Fantom, Polygon and Cronos, welcomed capital from the likes of Momentum6, BoostXLabs, Shima Capital, BX Ventures, X21 Digital, AU21, Magnus Capital, NFT Technologies, Benmo, BlockBeat and ten other investors.
“To have received investment and support from some of the best-known VC firms in the crypto industry is a testament to the work we have done behind the scenes to pioneer a novel win-to-earn gaming model.”
Duelist King CEO and founder Dzung Tran (Chiro) said of the update:
“Having sold out 250,000 NFTs in less than 45 minutes last month, momentum is building in the Duelist kingdom – and we’re thrilled that our investors recognize our potential.”
The funds will be used to establish Duelist King as a major player in the booming blockchain gaming space. While most releases to date have been based on a play-to-earn model, Duelist King is built around the concept of win-to-earn, wherein game economics center on rewards and earnings based on player engagement.
In the game, players earn rewards for competing in quests, battles and tournaments, and can also influence the direction of the project in terms of gameplay and design. The team behind Duelist King is composed of 15 developers and blockchain experts who have operated in the space since 2016.
A community-owned, incentive-based NFT card game, Duelist King will support cross-chain NFTs and later Duelist King tokens. The project was recently launched via an Initial DEX Offering (IDO) on OccamRazor and will conduct an Initial Farm Offering (IFO) on PancakeSwap on October 27. Card sale revenue is projected to reach $1 billion over the next three years.
The game’s developers are currently working on a Player vs Environment (PvE) version of the game, due for release in Q1 of 2022. Player vs Player (PvP) and multi-play features will then follow in Q2, whereafter Duelist King will host tournaments for its expanding community.
A sneak preview of the game was released last month and quickly generated hundreds of likes.
Duelist King aims to transform the way people play, participate and earn in card games through top-notch gameplay, asset designs and advocacy for the sustainable future of #Win2Earn. Built on Binance Smart Chain (BSC) and Cardano, and supported by Fantom, Polygon and Cronos, Duelist King is powered by in-house Decentralized Autonomous Organization (DAO), Oracle and Random Number Generator.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Fantom has surged to new highs as the race to secure a place in the multi-chain future intensifies.
Fantom in Price Discovery
Fantom just hit a new all-time high.
The Layer 1 network has kept up its multi-week rally, topping out at $2.48 Tuesday morning.
FTM/USD chart. Source: CoinGecko
The run to new highs may have been fueled by the launch of a new cross-chain bridge. SpiritSwap, a leading decentralized exchange on Fantom, has launched a multi-chain bridge, allowing users to send assets between Binance Smart Chain, Ethereum, Polygon, and Fantom. SpiritSwap’s SPIRIT token has also jumped today.
While the list of available assets varies depending on the network pairing, the bridge supports major stablecoins such as DAI, USDT, and USDC as well as ETH, MATIC, BNB, and many more. SpiritSwap’s multi-chain bridge will make it easier to move assets onto Fantom, encouraging users to take advantage of new yield farming opportunities on the network.
Over the past month, several highly-anticipated launches on Fantom have fueled its meteoric rally. The network’s FTM token has climbed over 82% in the last 30 days, with the expansion of DeFi on the network playing a major role. At the start of the month, the lending and borrowing protocol Geist Finance launched on Fantom, pushing the FTM token up 36%. Following that, Yearn.Finance announced that it would be expanding to the Fantom network, pushing prices even higher.
Fantom is one of several Layer 1 tokens that’s seen huge growth this year. Solana, Avalanche, Terra, and Cosmos all rallied over the summer amid growing belief in a multi-chain future, with generous liquidity mining programs and airdrops helping to attract users to their ecosystems.
However, with Bitcoin currently dominating the market, other Layer 1 tokens are slowly bleeding the gains they put in throughout August and September. Fantom has bucked this trend, breaking out higher and putting in new all-time highs.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, SOL, and several other cryptocurrencies.
This news was brought to you by ANKR, our preferred DeFi Partner.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Polkadot (DOT) chart technicals suggest it may rally to a new record high near $75 if DOT can manage to close above its $41–$43 range decisively.
That’s according to a classic bullish reversal setup known as an inverse head and shoulders (H&S) that forms when the price undergoes three selloffs during a period of market consolidation.
Specifically, the pattern contains an initial selloff, followed by a short-term price rally and another — deeper — selloff. That leads to one more small correction to the upside, followed by another selloff that bottoms out near/at the lowest level of the first selloff.
Inverse head and shoulders pattern illustration. Source: ThinkMarkets
The first and last selloffs represent “left” and “right” shoulders, respectively, while the second selloff represents the “head.” On the other hand, the level around which all the short-lived rallies top out represents the “neckline” of the head and shoulders pattern.
Traditional analysts typically calculate the H&S upside target from the neckline resistance by measuring the maximum distance between it and the head formation.
So, it appears that Polkadot has been forming a similar bullish pattern on its weekly chart, as shown below.
DOT/USD weekly price chart featuring inverse head and shoulders setup. Source: TradingView
The maximum distance between DOT’s neckline and the head’s bottom comes out to be nearly $31. Therefore, a successful bullish breakout above the neckline range of $41–$43 puts the next long-term target at approximately $75.
Parachain auctions coming in November
The inverse H&S pattern emerged as DOT rallied by almost 30% this past week to reach a five-month high at around $44. At the core of its weekly uptrend was a price boom across the crypto market, as well as the news of Polkadot’s first parachain auctions going live on Nov. 11.
In detail, Polkadot’s parachains are parallelized, application-specific chains — child ledgers tethered to a single parent ledger called the Relay Chain. Due to their parallel nature, parachains tend to process multiple transactions simultaneously and maintain and record their data on the main ledger by communicating with other chains.
Related: Polkadot to debut parachain auctions after governance vote
That comes as a break from the method of queuing transactions and processing them sequentially.
5 years after the vision of a heterogeneous multichain framework was first outlined in the Polkadot Whitepaper, parachains are now ready to launch on Polkadot. Motion 118, to schedule the first auctions, has passed council & now gone to public referendum.https://t.co/8pt3aT4vO3
— Polkadot (@Polkadot) October 13, 2021
DOT, which serves as a utility token for fees, governance, interoperability and bonding inside the Polkadot ecosystem, rallied by more than 24% after the parachain auction announcement.
Next, Polkadot aims to introduce a cross-chain feature that will enable its Relay Chain to external blockchains (Bitcoin, Ethereum, etc.) via specialized smart contracts. Meanwhile, the project also plans to launch “in-built bridging modules” that will enhance the interoperability of external blockchains with Polkadot.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
On Oct. 1, the cryptocurrency market experienced a 9.5% pump that drove Bitcoin (BTC) and Ether (ETH) to their highest levels in 12 days. A variety of reasons have been attributed to the price move, including the U.S. consumer price index, exchanges’ diminishing supply, and a “cup and handle” bullish continuation chart formation.
Traders are not likely to find an explanation for the sudden move, apart from investors regaining confidence after the Sept. 19 drop was attributed to contagion fears from China-based property developer Evergrande.
The Ethereum network has been facing some criticism due to the $20 or higher transaction costs caused by the nonfungible token (NFT) sales and decentralized finance (DeFi) activity. Cross-chain bridges connecting Ethereum to proof-of-stake (PoS) networks have been partially solving this issue, and Friday’s Umbrella network oracle service launch shows just how fast interoperability is advancing.
It is also worth noting that China’s announced even stricter rules last week had a positive impact on the volumes seen at Decentralized exchanges (DEX). Centralized crypto exchanges, including Huobi and Binance, announced service suspension for Chinese residents, and a significant outflow of coins followed this. At the same time, this increased movement on Uniswap and the decentralized derivatives exchange dYdX.
Even with all this volatility, there are still reasons for investors’ year-end bullishness on Ether. At the same time, the limitations imposed by Ethereum layer-1 scaling also caused some of its competitors to present significant gains over the past couple of months.
ETH price vs. AVAX, SOL, ATOM. Source: TradingView
Notice how Ether’s 58% positive performance in three months has been significantly below those emerging Proof-of-Stake (PoS) solutions offering smart contract capabilities and interoperability.
For bullish traders who think Ether price will break to the upside but are unwilling to face the liquidation risks imposed by futures contracts, the “long condor with call options” strategy might yield more optimal results.
Let’s take a closer look at the strategy.
Options are a safer bet for avoiding liquidations
Options markets provide more flexibility to develop custom strategies and there are two instruments available. The call option gives the buyer upside price protection, and the protective put option does the opposite. Traders can also sell the derivatives to create unlimited negative exposure, which is similar to a futures contract.
Ether options strategy returns. Source: Deribit Position Builder
This long condor strategy has been set for the Dec. 31 expiry and uses a slightly bullish range. The same basic structure can also be applied for other periods or price ranges, although the contract quantities might need some adjustment.
Ether was trading at $3,300 when the pricing took place, but a similar result can be achieved starting from any price level.
The first trade requires buying 0.50 contracts of the $3,200 call options to create positive exposure above this price level. Then, to limit gains above $3,840, the trader needs to sell 0.42 ETH call option contracts. To further limit gains above $5,000, another 0.70 call option contracts should be sold.
To complete the strategy, the trader needs upside protection above $5,500 by buying 0.64 call option contracts if Ether price skyrockets.
The 1.65 to 1 risk-reward ratio is moderately bullish
The strategy might sound complicated to execute, but the margin required is only 0.0314 ETH, which is also the max loss. The potential net profit happens if Ether trades between $3,420 (up 3.6%) and $5,390 (up 63.3%).
Traders should remember that it is also possible to close the position ahead of the Dec. 31 expiry if there’s enough liquidity. The max net gain occurs between $3,840 and $5,000 at 0.0513 ETH, which is 65% higher than the potential loss.
With over 90 days until the expiry date, this strategy gives the holder peace of mind because there is no liquidation risk like futures trading.
The views and opinions expressed here are solely those of theauthorand do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
THORChain has suffered an attack, leading to losses of around $8 million.
An attacker tricked the Bifröst protocol into accepting a fake deposit, then accepted a refund of the assets without adding any funds.
It’s the third major incident to hit THORChain in a month. A Bifröst exploit led to losses of $5 million only a week ago.
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THORChain says the attacker made off with around $8 million.
THORChain Hit by Another Exploit
Another THORChain vulnerability has been exposed.
THORChain has suffered a sophisticated attack on the ETH Router, around $8m. The hacker deliberately limited their impact, seemingly a whitehat.
ETH will be halted until it can be peer-reviewed with audit partners, as a priority.
LPs in the ERC-20 pools will be subsidised.
— THORChain (@THORChain) July 23, 2021
The team behind the project took to Twitter to announce that a hacker had carried out a “sophisticated attack” earlier this morning. The hacker used their own contract to trick THORChain’s Bifröst protocol into accepting a deposit of assets even though they hadn’t made any deposit. This essentially meant that they could receive a free refund without adding any funds to the protocol.
The hacker left a note suggesting that they could have taken more than $8 million, noting that they spotted “multiple critical issues.” A message in one of the transaction’s input data read:
“Could have taken ETH, BTC, LYC, BNB, and BEP20s if waited Wanted to teach lesson minimizing damage
Multiple critical issues
10% VAR bounty would have prevented this
Disable until audits are complete
Audits are not a nice to have
Do not rush code that controls 9 figures”
The total losses amount to around $8 million. THORChain said that the hacker was “seemingly a whitehat” because they made less impact than they could have done, and revealed that the hacker had requested a 10% bounty that would be awarded if they reach out. THORChain confirmed it would halt its network chain pending security audits and that liquidity providers would be reimbursed from its treasury. While the team thanked the THORChain community for its support, a note in the announcement read:
“It is a tough time for the community and project, and the pain is real.”
The impact of the incident has doubtless been compounded by THORChain’s recent run of other similar attacks. Last week, the protocol suffered losses of around $5 million when an attacker trickedBifröst into sending multiple 200 ETH transactions to their own address. In late June, THORChain was hit by another incident, though the losses came to a relatively minor $140,000.
THORChain is a cross-chain liquidity protocol for trading assets like BTC and ETH. It has its own token called RUNE for moving from one asset to another. The native token has also taken an 11.8% hit following the latest, currently trading at $4.14.
Disclosure: At the time of writing, the author of this feature owned ETH, ETH2X-FLI, and several other cryptocurrencies.
This news was brought to you by ANKR, our preferred DeFi Partner.
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Cross-chain decentralized exchange THORChain has suffered its second multi-million-dollar hack in as many weeks, with $8 million worth of Ether impacted.
However, the attack appears to have been carried out by a white-hat hacker, with THORChain announcing the perpetrator had requested a 10% bounty. ETH will be halted until the code has been audited.
Liquidity providers impacted by the exploit will be subsidized using the project’s treasury funds
The whitehat requested a 10% bounty – which will be awarded if they reach out, and they should be encouraged to do so.
It is a tough time for the community and project, and the pain is real.
The treasury has the funds to cover, but it’s time to slow down.
— THORChain (@THORChain) July 23, 2021
The exchange — which is still in the middle of a staged beta launch called Chaosnet — conceded that the “complexity” of its state machine comprises THORChain’s “Archille’s heel,” however asserted that its issues “can be solved with more eyes on, as well as a re-think in developer procedures and peer-review.”
A screenshot shared from the project’s Discord forum appears to show a message forwarded to the project by the hack via transaction data.
The hacker claims they deliberately minimized the damage from the exploit in a bid to teach THORChain a lesson, stating: “Do not rush code that controls 9 figures,” and “Disable until audits are complete.”
The hacker adds that they could have stolen Ether, Bitcoin, Binance Coin, Lycancoin, and many BEP-20 tokens if they had wanted to, asserting that “multiple critical issues” were found and that a 10% bug bounty could have prevented the incident.
message from hacker… pic.twitter.com/1j8wOPcYHa
— zillaQuest!? (@zillaQuest) July 23, 2021
On July 16, Cointelegraph reported that THORChain had been halted after 4,000 Ether worth $7.6 million was drained from the protocol. The protocol unsuccessfully proposed a bug bounty to the hacker in exchange for returning the stolen funds.
Related:ChainSwap announces compensation and ‘deep audit’ plan after $8M exploit
The decentralized exchange also lost $140,000 in a separate exploit suffered last month.
THORChain entered into its guarded “Chaosnet” launch in April, enabling cross-chain swaps across the Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Binance Chain networks.
