🪲 Compound Finance Pays Out Millions in Excess COMP After Buggy Update

Hello Defiers! Here’s what we are covering today,

Deep Dive

🧑‍💻 🦄 🌈 NYC DeFi Hub: The Defiant has just launched Colony, a co-working space in Dumbo for teams building DeFi and Web3 to join and find a community. There are 20 desks in an open floor plan at a reformed factory building. Fill out this form if you’re interested in working there or sponsoring the space.

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🙌 Together with: 

  • Balancer, one of the leading DeFi automated market makers (AMM) for multiple tokens. Dive into their pools at this link.

  • Kraken, consistently rated the best and most secure cryptocurrency exchange, which can get you from fiat to DeFi

  • Aave, an open-source and non-custodial liquidity protocol where users can earn interest on deposits and borrow assets. 

  • The DeFi Pulse Index, by Index Coop - DPI is the easiest way to capture the upside of DeFi with the benefit of diversification.  Buy DPI today on your favorite DEX.

DeFi Bugs

🪲 Compound Finance Pays Out Millions in Excess COMP After Buggy Update

NEWS Compound Finance’s smart contracts paid users an excess of millions of dollars in COMP tokens after a protocol update was deployed with a flaw in the code. 

SO WHAT The impact of the bug is limited to 280K COMP tokens and does not affect user deposits or loans, founder Robert Leshner said in a tweet. Just over 110K COMP tokens remain in the contract at the time of writing. COMP fell as much as 15% after news of the bug broke before recovering some losses.

GOVERNANCE The bug was introduced to the fifth-largest DeFi protocol by value locked after a community member wrote the proposal, and other community members reviewed and approved it. Any new changes to the protocol to fix this issue will require a seven-day governance process.


Token Listings

❄️ Avalanche’s AVAX Token is Set to be Listed on Coinbase Pro

LISTING Coinbase Pro is set to list Avalanche’s AVAX token for trading on Sept. 30, according to a Medium post from the company. Despite the listing, AVAX’s price action has been flat — changing  2.4% to $64.82 since the listing was announced on the morning of Sept. 29 on Coinbase’s Twitter

MINING The Coinbase Pro listing coincides with Avalanche’s incentive program, with $180M in AVAX up for grabs for liquidity mining, which is set to run this week, according to the project’s Twitter.

EVERY ASSET A Coinbase listing may not mean what it used to. In June, the company’s CEO Brian Armstrong tweeted that “our goal is to list every asset where it is legal to do so.” This stance differs from Coinbase’s strict listing process in September of 2018 when the project only listed Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin, according to a company Medium post.


Sponsored Post

Integral Protocol Aims to Bring 68% of Coinbase Trading Volume to DeFi

Integral Protocol, a new DeFi primitive, is on track to capture the market for large crypto trades, which makes up 68% of Coinbase trading volume.

On an explosive trajectory in 2021, there’s now $176 billion total value locked in DeFi. Yet, DEX volume still only accounts for 4% of global crypto trading.

Building off its success as the #1 dapp receiving grant funds from Gitcoin (GR9) in Q1 2021, Integral is an innovative exchange bringing the financial benefits of professional OTC trading to its own liquidity pools. Most DEX can’t serve large orders optimally. They lack the financial tooling to provide best prices or compete with OTC desks at leading centralized exchanges.

Integral executes orders with an oracle’s average price over a period of time. On large trades, Integral gets the best price, more often than not. On a $1mil trade, Integral now offers the best price 97% of the time compared to Binance!

The Integral team, fresh off $32m in funding from its own community in April, is now 15 people and growing rapidly, made up of crypto natives: investors/traders, startup founders, hedge fund managers, quant researchers, mathematicians, engineers, and growth hackers.

Crypto Twitter

When news broke last week that Twitter was finally going to embrace crypto and let users swap their old profile pics for NFTs, Brady Dale dove into the significance of this move, for both DeFi, online identity, and Twitter itself. Here’s his report:

🐥 NFT Profile Pics on Twitter: Will @Jack’s DeFi Move be a Game Changer?

CARTOONS A growing category of social media users now prefers using cartoons rather than their own photos to identify themselves online. They especially like cartoons that are as unique as their real faces. 

PROFILE PICTURES Non-fungible token (NFT) technology makes it easy for a person to know they are the only person who owns such an image. The kind of NFTs that work best here are ones that have picked up their own bit of jargon: PFP NFTs, where PFP stands for “profile picture.” 

AVATAR Much to everyone’s surprise, the micro-blogging site Twitter has all of a sudden announced that it will embrace the trend and give PFP NFT users on the site a way to show that they have proven they really own the NFT in their avatar. So what will that mean for the digital collectible industry?

CRYPTOPUNKS It might look like Twitter is just following where users are leading it. For anyone on crypto-Twitter, such NFTs have taken over the timeline. Where once there were lovingly filtered faces, today folks love to show off their fanciest non-fungible token (NFT) as their profile picture. For example, many prominent Ethereum backers (such as DCInvestor, David Hoffman of Bankless, and Snowfro of Artblocks) have the original NFT: CryptoPunks.

SOCIAL MEDIA But because Web2 giants have been wary about all things blockchain, no one really expected a company as big as Twitter to embrace Web3’s approach to profile pics. Then, Jack Dorsey’s social media company announced that it was testing a tool for loading an NFT onto a profile and allowing the user to show that they had proven — with a crypto wallet — that they really owned that digital object. And on Wednesday a member of Twitter’s marketing team showed a preview video of how it’s likely to work.



📺 First Look: Non Fungible Debt Positions with JPEG'd


🔗 Open Blockchains and Decentralized Identity Standards: Coin Center

Coin Center is the leading non-profit research and advocacy center focused on the public policy issues facing cryptocurrency and decentralized computing technologies. Our mission is to build a better understanding of these technologies and to promote a regulatory climate that preserves the freedom to innovate using permissionless blockchain technologies.

🔗 DEX aggregator 1inch blocks out US trades in preparation for separate American platform: The Block

As of September 29, the decentralized exchange aggregator 1inch has begun geofencing U.S. IP addresses. Though the platform's terms of use have apparently restricted U.S. users since April, that restriction has only recently come online on a technical level.

🔗 Gensler Reiterates Support for Futures-Based Bitcoin ETFs: CoinDesk

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated his support Wednesday for a narrow class of bitcoin exchange-traded funds (ETFs) that would invest in futures contracts instead of the crypto itself.

🔗 Multi-chain crypto wallet XDEFI raises $6 million in new funding: The Block

XDEFI Wallet, a multi-chain crypto wallet that comes in the form of a browser extension, has raised $6 million in a new funding round.

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🧑‍💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, and yyctrader, and edited by Edward Robinson, Bailey Reutzel, and Camila Russo. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was led by Camila, edited by Alp.

The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access, while free signups get only part of the content. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button above ($15/mo, $150/yr.