February 18

A rather brilliantly executed range of tx’s in our opinion, highlighting the power of DeFi and ‘flash loans’!

“Decentralized finance (DeFi) project bZx has suffered an attack which successfully gamed multiple DeFi protocols to extract $350,000 from the platform, about 2 percent of the assets under management.

The attacker borrowed 10,000 ETH, worth approximately $2.67 million, in a flash loan.

The attacker then split the borrowed funds, sending 5,000 ETH to DeFi protocol Compound and the other half to bZx. After the deposits, the attacker shorted wrapped bitcoin (WBTC) on bZx quickly followed by borrowing 112 WBTC on Compound, worth about $1.1 million, and selling the borrowed WBTC on UniSwap.

bZx uses UniSwap’s price feed for WBTC. When the attacker dropped the $1.1 million worth of WBTC on UniSwap, their bZx short became extremely profitable. bZx depended on only one oracle for pricing.

You can’t rely on [only] one oracle connected with an exchange API. The loss amounts to an expensive bug bounty and highlights the novelty of flash loans.”

See Also: Ivan on Tech Analysis (Video)
See Also: EthDenver: Build with Chainlink (Video)
See Also: DeFiZaps (Video)

“The CBR announced it had successfully piloted a platform that allows users to tokenize assets, including equities and currencies, and issue them to investors.

This coincides with local media reports that the CBR is planning on updating bank guidance on what constitutes criminal activity, for the first time in eight years. According to business news site RBC, both the sale and purchase of cryptocurrencies could be considered suspicious under the new guidance.

Still undergoing in-house assessment, the guidance would ask commercial banks to flag activity and authorizes them to block transactions, and even close the accounts, of any clients found to be trading cryptocurrencies.

Russia seems to have taken one step forward, two steps back when it comes to crypto.”

See Also: Brazilian Cryptocurrency Exchanges Hit Hard by Tax Regulations

“The latest decision to launch daily ETH options comes two weeks after daily bitcoin options went live. The new product will have strike price intervals of $5 and can be traded in the 24 hours preceding the expiry at 08:00 UTC every day.

These shorter-dated, cheaper options are great instruments to use for short term strategies enabling the trader to hedge events or benefit from expected short term moves.”

“Binance will soon be launching a digital asset trading platform that can be rebranded by smaller exchanges for their local markets.

Binance Cloud will offer the matching engine, security controls and liquidity of the main Binance.com exchange. So while an exchange may have its own branding and local fiat currency, the back end will basically be Binance itself, which will bring the benefit of more liquidity, albeit indirectly, and potentially in places where Binance doesn’t currently operate.

This could mean Binance would have to compete with AlphaPoint, one of the largest infrastructure providers on the cryptocurrency exchange market today.”

“India’s Chief Election Commissioner Sunil Arora said that the country hopes to increase voter turnout with a blockchain-based voting solution. Blockchain is being used by the system to allow citizens to vote outside their city of registration while also preventing them from casting multiple votes.

Arora said that he hopes the blockchain voting system will be put in place during his tenure, which ends in April 2021, adding that there is a proposal pending with the ministry of law to link voter IDs and citizen ID system.”

Eth2 101

“The latest developments are unlikely to impact crypto assets in the long-term, as the issuance of a digital yuan would be tightly controlled with no public mining or trading with existing cryptos, said eToro analyst Nemo Qin.

Unlike most crypto assets, the DCEP will be a centralized, government-issued digital currency … with these factors, the DCEP should not have a direct impact on the crypto asset market.”

See Also: Chinese Quarantine Cash To Stop Coronavirus

“MoneyGram has pushed out a new service called FastSend, but it has elected for Visa over XRP.

The weird part is that Ripple purchased a $50 million stake in MoneyGram in June, on the premise that it would start using XRP for cross-border transactions and remittance.

Good Interview: Tim Draper

This is just getting sad 😂

“Craig Wright has warned the Bitcoin (BTC) and BCH to stop using the Bitcoin database in order to avoid potential lawsuits. Wright argues that the distributed Bitcoin database rights should be considered as personal property.

Wright claims that representation of 21 million total Bitcoin is only a verbal deal. The Bitcoin’s creator should have the full rights to claim this unilateral contract.

As the creator of Bitcoin, I maintain the sui generis rights to any copy of the database created from Genesis in January 2009. I shall not be relinquishing the ownership. I will be licensing it, and have already engaged in a process.”