🥷🏻 CREAM Finance Attack Leads to $23 Million Loss in AMP and ETH

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

News
Opinion
Video
Links
Podcast

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Exploits

🥷🏻 CREAM Finance Attack Leads to $23 Million Loss in AMP and ETH

ATTACK New token standards introduce complexity that DeFi applications are still learning how to grapple with. Prime example: Money market CREAM Finance was hit with a reentrancy attack on Aug. 30 that allowed attackers to drain $22.8 million in Flexa’s AMP token and $4.2 million worth of ETH (based on market prices in mid-morning trading Monday).

TRANSFER Blockchain security company Peckshield ascribed the attack to the way the AMP token functions. The company tweeted, “The hack is made possible due to a reentrancy bug introduced by $AMP, which is an ERC-777-like token and exploited to re-borrow assets during its transfer before updating the first borrow.”

HONEYPOT With $82.4B in assets currently locked up in decentralized finance smart contracts, the industry presents a tantalizing honeypot for cybercriminals. There have been a slew of similar attacks this year, including a previous attack on CREAM in February.

👉READ THE FULL STORY IN THE DEFIANT.IO 👈


NFT Funds

🖼 Three Arrows Founders and Mysterious Collector ‘Vincent Van Dough’ Launch $100M NFT Fund

NEWS A prolific NFT collector who goes by the pseudonym VincentVanDough (VVD) on Aug. 29 announced they would be launching a new NFT fund in partnership with Su Zhu and Kyle Davies, the founders of crypto hedge fund Three Arrows Capital.

TOP PIECES The new fund, named Starry Night Capital after one of Van Gogh’s most famous paintings, plans to raise $100M to invest in “top pieces from the most desired sets”, Dough said on Twitter.

GALLERY Starry Night Capital aims to launch a physical gallery in a major city later this year, in addition to plans for an NFT education portal and community building initiatives. The collector drew the attention of the NFT community a few months ago when they started buying up rare Art Blocks NFTs at prices that were considered extremely high at the time.

👉READ THE FULL STORY IN THE DEFIANT.IO 👈


SPONSORED POST

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Hegic V8888 is live in mainnet: 

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Opinion

🧗 Scaling DAOs Won’t Be Easy: Here’s Five Major Challenges They Must Overcome

In this essay, Connor Spelliscy highlights five key challenges DAOs must address if they are scale in a meaningful way. He draws on input from the DAO Summit and interviews with influential voices in DeFi.

UPSHOT The only thing cooler than working for one DAO is working for all the DAOs. But to do that you need to figure out what all DAOs need. That sounded tricky to us, too.

BRILLIANT So we asked! We gathered together some of the leading DAO founders, operators, and investors at the DAO Summit. We then separately interviewed more than 20 other brilliant DAO stakeholders, and asked them what they needed most. And here it is: a list of five of the most pressing questions for DAOs. So you can level up and get working right now. 

STAKEHOLDERS With DAOs starting to research legal, governance, diversity, treasury management, tax, and other issues, much of the foundational learnings and research of DAO stakeholders remain siloed within their own communities. By doing open source work, you’ll accelerate the functionality of all DAOs, rather than just one. Your work can go so much further. 

👉READ THE FULL STORY IN THE DEFIANT.IO 👈


Video

📺 Quick Take: ⚠️ Security issue on Ethereum


Links

🔗 Money Trail From Liquid Exchange Hack Points to Wasabi Privacy Wallets: CoinDesk

Hackers who stole about $97 million in cryptocurrency from the Liquid exchange used the non-custodial, privacy-focused Wasabi wallet to protect some of their gains, according to sleuthing firm Crystal Blockchain.

🔗 SOL burn? Solana price hits $100 for the first time after mysterious ‘Ignition’ event revealed

Solana (SOL) prices rose on Monday as traders speculated on what appeared to be a key but mysterious feature launch scheduled for later this week.


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🧑‍💻 ✍️ Stories in this newsletter were written by Brady Dale, YYCtrader, and edited by Bailey Reutzel and Edward Robinson. 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).