In today's edition of YIYL, we head over to the gift that keeps on giving, DEFI. If it wasn't for the DEFI space I am 100% sure there wouldn't be enough for me to troll and turn these shitposts into a daily series, but here we are and I am not going to stop anytime soon.
While this cycle of shitcoins will fondly be remembered by the Luna ponzi collapse, when people think back to DEFI of the last 2 years, Solana hasn't been too far behind in the number of failures it has on its short history.
The "we are going to kill Ethereum" by centralising even more than ETH and then running an EVM on top of and calling it a day was never going to do much but allow for faster cheaper gambling and it was nothing more than a race to the bottom.
Solana also offered generous grants to come and build out their ecosystem and in a bit to "catch up" to Ethereum and the like, these builders cut a lot of corners. Corners that are clearly very sharp and end up injuring their user base.
A raydium of sunshine
While most media is focused on if Binance is the next to go tips up, An exploit on the Solana-based Raydium decentralized exchange project resulted in a total loss to the platform of $4.4 to $5.5 million.
The so-called attacker was able to withdraw a mix of assets from the pools. They bridged at least $2 million to Ethereum and tumbled them through Tornado Cash; another $1.5 million remained on the Solana chain, where some projects began freezing assets.
The user who managed to secure the funds only got a partial redemption of his spoils which is somewhere around $2–3.5 million.
Raydium claims the exploit was a trojan attack, though they've provided no further evidence to substantiate this. According to Raydium, a trojan allowed an attacker to compromise the private key belonging to the pool owner's account. Perhaps they don't want to reveal details because they still need to patch the issue or they don't want to give the information because it's an insider job, who knows?
Another DINO - Decentralised in name only
Either way once a user has control over the private key, be that a good or bad actor, they both have the same rights, so this isn't trustless or decentralized, this is a custodial service.
If you have preferential access to finds, bitch you are offering financial services, now deal with it.
If that doesn't convince you, then please explain to me how a "decentralised project" can freeze funds, have the authority to halt contracts on the AMM & farm programs and then also make a decision to offer up a bounty.
Raydium has offered a 10% "bug bounty" to the hacker if they return the stolen funds. Again as I pointed out so many times these are the actions of a centralised tech company larping to get around certain regulations.
While they may avoid regulation, the free market has its own ability to regulate by attacking vulnerabilities.
Talk about the price
The price action on Raydium's latest fuck up is hardly noticeable at this point, the coin is trading at $0.16 a 99.0% retracement from its all-time high a year ago, when it traded at $16.83.
Most people who held this token are probably well and truely rekt and should take it as a lesson, but I am 100% sure the next market maker that spins up and offers a coin with an APY and promise to burn it with trading fees will sucker in a new bunch of morons.
Solana limps on
The Solana Defi ecosystem was hit especially hard by the collapse of the FTX exchange since a lot of liquidity was managed by FTX and they relied heavily on the ecosystem so stories like this are only going to put further pressure on a network I pretty much consider dead.
It's billionaire backers have long since dumped their lock up and this project will continue to bleed out into non-existance.
Sources:
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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