SafeMoon LP Compromised

SafeMoon, a cryptocurrency project that gained traction through endorsements by celebrities and social media influencers, recently announced that its liquidity pool (LP) had been compromised. While the company has not revealed any details about the attack, it confirmed that it is taking steps to address the issue as soon as possible.

The incident is the latest in a series of attacks targeting cryptocurrency projects in recent months. Like many other crypto projects in 2021, SafeMoon was backed by numerous celebrities, including Nick Carter, Soulja Boy, Lil Yachty, and YouTubers Jake Paul and Ben Phillips. However, a lawsuit filed in February 2022 alleged that these endorsements were part of a larger scheme to defraud investors by misleading them to purchase SafeMoon tokens under the pretext of unrealistic profits.

Experts suggest that a recent software upgrade may be to blame for the vulnerability that allowed the attacker to compromise SafeMoon’s LP. According to PeckShield, a blockchain investigation firm, a public burn function introduced in the latest upgrade allowed users to burn tokens from other addresses, potentially creating a security flaw that could be exploited by hackers.

A community member known as “DeFi Mark” provided further details about the attack, explaining that the vulnerability was used to remove SafeMoon tokens, causing an artificial spike in the token’s price. The attacker was then able to sell off the tokens at an inflated price, taking advantage of the situation for personal gain.

The incident has raised questions about the security and legitimacy of SafeMoon, as well as the role of celebrity endorsements in cryptocurrency projects. While the company has not provided any further details about the attack or its response, it is clear that security is a top priority for SafeMoon and other cryptocurrency projects.

Cryptocurrency remains a relatively new and largely unregulated industry, with many investors drawn in by the promise of high returns and the endorsement of celebrities and influencers. However, as the SafeMoon incident and others like it have shown, there are risks involved in investing in this space, and investors should be cautious and do their own research before committing their money to any project.

Despite the challenges and risks, many experts believe that cryptocurrency and blockchain technology have the potential to revolutionize the financial industry and create new opportunities for investors and businesses alike. As the industry continues to mature and evolve, it is likely that we will see more incidents like the SafeMoon attack, but also more innovations and advancements that could transform the way we think about money and finance.


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Uniswap V3 Offers Far Higher Exposure, Lower Risk For Staking

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Uniswap has revealed an overview of V3 of the DEX which is due to launch on May 5, described by Uniswap as “the most flexible and capital-efficient AMM ever designed.” V3 will also launch separately on the L2 Optimism solution.

User Capital Now Goes 4000 Times Farther

Uniswap accounts for 20% – 25% of all daily transactions on the Ethereum network, and V2 has handled $135 billion in volume in the year since its launch.

DeFi users have flocked to the DEX giant to stake their capital and earn rewards, and in May, they will be able to significantly raise their exposure with lower downside risk.

V3 introduces concentrated liquidity and multiple fee tiers, allowing liquidity providers (LPs) control over the price ranges their capital is allocated to as well as compensation rising with higher risks taken by LPs.

“By concentrating their liquidity, LPs can provide the same liquidity depth as v2 within specified price ranges while putting far less capital at risk.”

LPs will be able to provide capital with up to 4000x capital efficiency compared to V2, offering low-slippage trade execution superior even to centralized exchanges, according to the announcement.

SIMETRI Research

Is Uniswap V3 Cheaper to Use?

With gas fees near all-time highs, retail users have been squeezed out of Uniswap along with all other Ethereum protocols in recent months, with individual transaction fees north of $70.

The new updates were mostly focused on trade execution and capital efficiency, rather than reduced fees, as fees will ideally be reduced and stabilized by upcoming scaling solutions for the Ethereum network.

However, the Uniswap announcement states that V3 will come with “slightly” cheaper gas fees along with the other features. Transactions made on the L2 Optimism deployment, however, will be “significantly cheaper!”, according to the Uniswap team. Uniswap oracles will also be cheaper and easier to integrate.

While fees will remain high by historical levels for the near term, the new update is nevertheless a game-changer for the staking community.

Advancements such as these in Ethereum-based DeFi could well spell the beginning of the end for competing efforts being built on Binance Smart Chain and other networks.

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