Crash and hackers, Ethereum and NFT｜Beidou Encryption Weekly #26

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• The first is economic interest. Hacking is a field with high technical barriers, and it will target projects with high economic value. On May 10, the total lock-up volume of DeFi broke through the 130 billion mark, hitting a record high. According to Infinite Market Cap data, this scale has surpassed the market value of financial giants Goldman Sachs Group (120.41 billion US dollars) and China Life Insurance (120.23 billion US dollars), It is closing in on HSBC ($125.47 billion) and SoftBank ($140.48 billion).
• The second is that the weak link is vulnerable to attack. Ethereum DeFi has undergone large and small attacks before, and its anti-fragility has been improved. The BSC ecology that is growing wildly has not yet been tested for security, and its security is insufficient.
• The third is timing. In order for hackers to obtain higher economic benefits, the best strategy is to match the attack action with the market stage, and the best time is around the market turning point. Throughout May, there were 11 BSC projects that were concentrated by thunderstorms. Maybe the ducks that hackers dont want to get fly away.
When PeckShield briefly analyzed the BurgerSwap flash loan attack, he mentioned that the logic behind the DeFi protocol is more important than the code. The codes of BurgerSwap and JulSwap, which were attacked on May 28, both belonged to Fork Uniswap, but it seems that they did not fully understand the logic behind Uniswap. The DeFi field is an important part of the development of the blockchain field, but it is currently in the era of over-issued DeFi protocols. As time goes by, only those DeFi protocols that focus on safety and protect their own feathers can survive. PeckShield Alert: Attacker is watching you !
There is a saying in the stock market: Only when the tide goes out do you know who is swimming naked. It is difficult to pay attention to risks when the market is rising. Frequent security incidents and attacks on animal series are a kind of risk clearing, making this bull market healthier. Of course, participants are also reminded of the risks - 90% of the price flash crashes are rounded to zero.
By: PeckShield
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https://www.chainnews.com/articles/334829076898.htm

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Changes in domestic mining policies and Musk’s launch of the Bitcoin Mining Committee have brought attention to the clichéd issue of Bitcoin’s energy consumption. The mainstream media once again clarified that “Bitcoin mining’s impact on the environment is still insignificant.” Letting go of this old question, lets focus on 2 more potential themes:

1. Goldman Sachs: Ethereum will surpass Bitcoin as a store of value.

Goldman Sachs believes that Ethereum is likely to replace Bitcoin and become the mainstream, taking into account multiple factors such as real use (DeFi and NFT), user base (which has reached 80% of the scale of Bitcoin), and technological iteration speed (Layer 2 and PoS). cryptocurrency. In April, Goldman Sachs exec Raoul Pals Global Macro Investor included a lengthy report by Nikhil Shamapant arguing why Ethereum could reach $150,000 by January 2023.
The original report of Global Macro Investor
https://www.realvision.com/gmi
BitMEX founder Arthur Hayes wrote The Looming Fear: Will Ethereum Overtake Bitcoin?A logic is given in: the enterprise market value of the dollar-denominated product is higher than the underlying dollar amount. For example, USD M0 is 5.8 trillion, and the total market capitalization of FAANG is 6.36 trillion USD. Bitcoin as the foundation of a crypto-pyramid—there is Bitcoin collateral in any cryptocurrency economy—would certainly strengthen Bitcoin, but the economies built on top of it would have a larger market capitalization than Bitcoin, and the largest of these would The entity is Ethereum.
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2. NFT is continuing to grow rapidly.
In May, when cryptocurrencies plummeted, users bought, traded, and sold an average of 85,787 NFTs per day, with a total value of $5.8 million, an increase of 277% compared to January.
Electric Capital Partner Maria Shen’sAs we move from creating NFTs to using them, these five areas are full of opportunityIntroduced five new areas covered by NFT:
1) NFTs are a fantastic tool for accessing exclusive content and opportunities. Forecast direction:
• The combination of NFT and social tokens will usher in great development (Roll, Collab.Land, Mintgate, Unlock, Unlock);
• The NFT version of Shopify will be favored by creators, allowing creators to build their own brand stores (Mintbase, DAORecords);
• Businesses will need their own branded NFT platforms.
2) Ownership of joint creation and cooperation, such as AsyncArt, a platform where collectors can recreate the NFT they own. Forecast direction:
• NFT remixing, that is, secondary creation;
• Fans will be able to create games for their favorite characters, implement metaverse support (PUNKS comic);
• Ownership and Revenue Dispute Resolution (Upshot).
3) On-chain reputation and identity, such as Uniswap now provides users with NFTs to prove their positions. Forecast direction:
• Chain applications use NFT ownership as a quality signal for users;
• Provide NFTs to community members based on their contributions;
• NFT ownership determines governance seats;
• NFT determines credit score.
4) NFT discovery and curation platforms, such as NFT curation and search platforms (Opensea). Forecast direction:
• NFT version of LinkedIn;
• NFT search engine.
5) NFT financialization, such as NFT fragmentation and NFT issuance of dividends. Forecast direction:

• NFT will soon be able to generate cash flow (Cryptovoxels, music master, reNFT, Varda, Charged Particles);
• Fragmented NFTs will be introduced into the DeFi ecosystem (NFTfi);
• Issue influential NFT;
• Financing with NFTs.
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No. 3 Inventory of Derivative Tracks Worth Collecting

DeFi derivatives are considered to be one of the most promising markets for DeFi, including six major directions including synthetic assets, options, prediction markets, perpetual contracts, insurance, and interest rate derivatives. TUSHAR JAIN, managing partner of Multicoin Capital, once wrote an article summarizing some advantages of DeFi derivatives agreements, such as:

1) There is no centralized exchange operator, so fees are lower in the long run;
2) access without permission;
3) Anti-censorship features, so that no one can close the exchange;
4) There is no counterparty risk, because users hold their own funds;
5) No withdrawal limit or transaction size limit;
6) There is no way to unilaterally change the rules of the exchange;
7) Any asset with a public price feed can be traded.
Some derivatives projects have achieved good performance. For example, Synthetix currently has a total lock-up volume of US$1.7 billion. The cumulative trading volume of the Layer 2 version of the perpetual contract dYdX has reached 1 billion US dollars. The chain catcher has comprehensively sorted out the representative projects in the 6 major directions of derivatives. Here are the projects under each category in the article, and more introductionsSee original text。

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sudden and progressive

sudden and progressive

• Venus, the BSC lending agreement, released a compensation plan for liquidation events, and will establish a Venus Council after isolation from Swipe.
• Automated market maker BurgerSwap has confirmed losses of nearly $7 million from a flash loan attack. PeckShield commented that the logic behind the DeFi protocol is more important than the code.
• Belt Finance, the AMM protocol on the BSC chain, was attacked by flash loans. Hackers stole more than 6.2 million US dollars in BUSD from Belt Finance through 8 transactions.
• JulSwap, the DEX protocol on the BSC chain and the automated liquidity protocol, was attacked by flash loans, and $JULB fell by more than 95% in a short period of time.
• Merlin Lab, the BSC ecological automatic income aggregator, was attacked. The attack method was similar to that of PancakeBunny, which was attacked by flash loan 5 days ago, and lost 200 ETH.
• The DeFi protocol AutoShark Finance on the BSC chain was attacked by flash loans, causing its currency price to crash, falling to $0.01, a drop of more than 99%. PeckShield reminded users to invest cautiously.
• Regulation and Policy

Regulation and Policy

• Vice Premier Liu He of the State Council: Strengthen the construction of computing power infrastructure.
• US SEC Chairman Calls for Cooperation with Congress to Regulate Crypto Exchanges.
• U.S. Treasury Secretary Yellen: Support research on central bank digital currency policy
• The U.S. Treasury wants to expand crypto reporting to crack down on offshore tax evasion.
• South Korea is on track to impose a 20% tax on capital gains from crypto trading starting next year.
• The National Assembly of South Korea has submitted 6 bills related to virtual currency, including liability for damages caused by hacker attacks.
• The Inner Mongolia Development and Reform Commission released the Eight Measures to Resolutely Crack Down on and Punish Virtual Currency Mining Behaviors for public consultation.
  
• Quotes and Trading

Quotes and Trading

• Chainalysis report: Giant whales bought about 77,000 bitcoins during the 519 crash.
• The market value of the US dollar stablecoin USDT has exceeded 60 billion US dollars.
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Investment and Financing

Investment and Financing

• Circle, a USDC development company, has completed $440 million in financing and is considering listing through a merger with a SPAC.
• Balancer Labs raised $24.25 million through the sale of tokens. Investment institutions include Alameda Capital, Pantera Capital, Blockchain Capital, etc., and individual investors include Synthetix founder Kain Warwick.
• Set Labs, a DeFi structured investment product platform, completed a US$14 million Series A financing led by 1kx and Hashed.
• Rikkei Finance, a DeFi lending platform, completed a financing of US$5.6 million, with participation from LD Capital and others.
• HaloDAO, a stable currency trading market, has completed a seed round of financing of US$3.5 million and will first support Hong Kong dollars, Singapore dollars and Indonesian rupiah.
• Shield Protocol, a decentralized derivatives protocol, has raised $2 million in a private round led by AT Capital and HashKey Capital.
• 【infrastructure】
  
  【infrastructure】
  
• Chia Network completed a financing of 61 million US dollars, and a16z and others participated in the investment.
• Blockchain application building solution Reach raised $12 million at a $48 million valuation.
• Sukhavati Network, a decentralized cloud service network, has completed a new round of financing of US$8 million.
• Blockchain infrastructure QuickNode has raised $5.3 million, led by Reddit co-founder Alexis Ohanians fund.
  
  【NFT】
• OneOf, a Tezos-based music NFT platform, has raised $63 million and will launch the platform next month.
• Meme.com, a Meme-themed NFT marketplace, has raised $5 million in funding.
• Unique Network, Polkadots ecological NFT public chain, completed a financing of US$4.3 million, led by Outlier Ventures.
• HoDooi.com, a multi-chain NFT marketplace, received $4.3 million in strategic financing.
• NFT STARS, a new generation of cross-chain NFT platform, announced the completion of strategic financing of US$3.75 million.
• The NFT community CryptoC Labs has completed $1.6 million in financing and will launch an encrypted art gallery Wind.
• Only1, an NFT social platform based on the Solana blockchain, announced its first batch of strategic investors, including NGC Capital and others.
  
  【Private Equity】
• 【other】
  
  【other】
• The company affiliated with Yunxiang Blockchain has completed the B-round financing of over 100 million yuan, led by Fosun Fanyi Fund.
• Pure White Matrix completed the A-round financing of nearly 100 million yuan, and received strategic investment from Ant Group and others.
• Blockchain technology company Shuqin Technology has completed tens of millions of RMB in Series A financing.
• Encrypted market monitoring company Solidus Labs received $20 million in Series A financing, with the former CFTC chairman and chief innovation officer participating.
• The Stellar Development Foundation invests $15 million in AirTM to facilitate the development of the AirTM platform.
• Pintu, an Indonesian encryption exchange, completed a financing of US$6 million, with investment from Pantera Capital, Coinbase and others.

Public Offering/Liquidity Mining

• 【Ethereum expansion and related】

Project Progress

• Ethereum Foundation developer: Altair, the first Beacon Chain upgrade, has made progress.
• On May 29, Arbitrum, a Layer 2 solution, launched the mainnet beta version Arbitrum One, and has deployed the Arbitrum contract on the Ethereum mainnet, starting to introduce infrastructure and projects. There are currently over 250 teams requesting to list on Arbitrum One.
• Polygon released the SDK software development kit to build the Ethereum multi-chain system.
• Ethereums second-layer solution, zkSync, launched the zkSync 1.x test network, which supports NFT and exchange functions.
• The vote to deploy Uniswap V3 to the Ethereum expansion network Arbitrum has been unanimously passed, and the next step will be to start the migration.
  
  【Public chain】
  
• The DFINITY Foundation launches a $250 million developer incentive program.
• DFINITY founder Dominic Williams announced that DFINITY will integrate Ethereum.
  
  【DeFi】
  
• Uniswap will soon restart general-purpose liquidity mining instead of the UNI liquidity mining program.
  
• SushiSwap: Masterchef V2 will be launched on the mainnet on June 1st to realize double mining of tokens.
  
• The proposal ZEIP-88, which integrates 0x protocol optimization with Uniswap V3, has opened for voting.
  
• Lido Finance, a staking liquidity solution, announced the opening of the Solana and Terra staking service application channels.
  
• 【other】
  
  【other】
  
• Prediction market Augur cooperates with Chainlink and Polygon to launch sports betting business.
  
• Ripple recently issued a document reiterating its commitment to achieve net-zero carbon emissions by 2030.
  
• The Binance NFT marketplace will be launched on June 24, and the first creators of its NFT platform have been announced.
  
• Traditional Finance/Large Companies
  
  

Traditional Finance/Large Companies

• 【Blockchain+】
【Blockchain+】
• Gucci will auction the first NFT at Christies, and the proceeds will be donated to fight the epidemic.
  
• Legendary boxer Floyd Mayweathe is offering NFT digital collectibles on Rarible.
  
• The TechCrunch founders apartment will be sold as an NFT.
  
• 【other】
【other】

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Academics, Institutions and Media

Academics, Institutions and Media

• Goldman Sachs: Ethereum will surpass Bitcoin as a store of value.

KOL

• On May 31, Dalio said in an interview with CNBC that the digital renminbi is a viable alternative currency, and Youwang has become a global reserve currency and is expected to compete with Bitcoin.
• In an interview at a CoinDesk event, Dalio said the U.S. dollar is on the verge of falling, the last time it was in 1971. In this environment, Bitcoin, with its gold-like properties, is increasingly attractive as a savings tool. Dalio volunteered in the interview that he owns some bitcoin. When it comes to transaction efficiency, Dalio believes that Ethereum is relatively more efficient, which also echoes Goldman Sachs views.
• Co-founder of Guggenheim: The practicality of Ethereum is much higher than that of Bitcoin.
• V God: PoS can eventually reduce Ethereum energy consumption by up to 10,000 times.
• Grayscale founder: ZEN is the most interesting at present, and there is a lot of room for growth.
• Justin Sun: NFT is in the early and fast-growing stage, and it is expected to see 1 million NFT collectors this year.
• Yao Qian: The relationship between the central banks digital currency based on accounts and tokens is not an either-or relationship.
• At the 2021 Spring Conference of the International Finance Forum (IFF), Yao Qian said that if the central bank’s digital currency runs on a network such as Ethereum, it can benefit the unbanked and achieve financial inclusion. Yao Qian specifically stated that he has left the Peoples Bank of China, and what he said only represents his personal academic views, not the Peoples Bank of China, nor his current institution.
• Nick Tomaino, founder of 1confirmation: In the next five years, the number of users in the cryptocurrency industry will reach 1 billion. (1confirmations first fund raised $26 million in 2017, and LPs include billionaire Mark Cuban, legendary venture capitalists Marc Andreessen and Peter Thiel. At present, the funds assets have exceeded $800 million, and the third fund has recently been completed of $125 million in funding.)
>>Information sources for Part 2, Part 3, and Part 4: Lianwen,