Decentralized finance, otherwise known as the challenge, has grown significantly this year, with the total blocked value (TVL) in the challenge now exceeding $ 14 billion. Meanwhile, many challenge platforms are under attack with flash loans and there are so many new challenge projects that it is difficult to keep up with them all. Additionally, while many Defi supporters claim that these platforms offer greater privacy, examples now show that almost anything can be seen on a chain connecting Ethereum addresses to identities and businesses.
Exploits and flash loans are becoming commonplace in the land of decentralized finance
In 2020, the challenge has exploded and there are billions of dollars sitting in a myriad of platforms and apps offering a new kind of funding today. The observed growth challenge is unheard of and resembles the Initial Coin Offering (ICO) in 2017. One of the biggest differences, however, is that many challenge projects are more than just a white paper and a token, because many apps like Maker, Uniswap, Aave, and others have offered varying degrees of utility.
November 22, 2020 statistics show that the TVL challenge has passed the $ 14 billion handle. At the end of August, the total TVL of the challenge ecosystem was only $ 7 billion, meaning the challenge economy has doubled in just three months. Massive growth is not without problems and even blatant scams. It appears that a myriad of Defi projects are being drained by seasoned Ethereum users, liquidating capital via complex flash loans.
when is the next challenge?
– i.am.nomad (@IamNomad) November 21, 2020
This week alone, news.Bitcoin.com reported on two major flash loans, having also reported these attacks several times in advance. Five days ago, the Value Defi project saw a flash loan attack which siphoned off $ 6 million in DAI. It was after the team tweeted that the project had a “flash loan attack prevention” and then deleted the tweet. Flash loans and challenge exploits have happened so much that it has become a regular activity.
On November 21, 2020, the popular Twitter account “I am nomad” asked his 65,000 followers in Defi’s next feat would be in a survey with three choices. The three choices were “today”, “tomorrow” and “within seven days”. Well shortly after the tweet, The Block’s research director Larry Cermak replied to tweet.
“It was quick,” Cermak replied, sharing an article about operating the Defi Pickle Finance platform for nearly $ 20 million.
The eye without a cover and transactions on the chain
Moreover, a few days in advance, the Twitter handle @ n2ckchong (Nick C) shared an interesting perspective from the challenge world which can be seen on the channel.
“What’s beautiful (and quite scary) about challenge is that we can see everything that’s going on chain and connect addresses to identities and businesses,” Nick C tweeted Wednesday. In the Twitter thread, Nick C shows a breakdown of the ether addresses from Three Arrows Capital (3AC), Jump Trading and Polychain Capital.
the first tweet alleges that 3AC is one of the “largest providers of compounds” and also notes that 3AC has $ 100 million in WBTC, $ 50 million in ETH and $ 6 million in DAI stablecoin. “3AC also provides 275 YFI and $ 13 million in LINK to Aave and operates SUSHI with recently acquired 1.5 million SUSHI,” said Nick C. “3AC [also] acquired 351k LINK during [the] recent plunge, ”he added. In other Tweeter, Nick C breaks down some ostensible estimates of Polychain Capital’s challenge stock.
“Polychain Capital has been YFI’s biggest buyer in recent weeks,” he added. “They have acquired 570 YFI (~ 2% of the total supply) in the past five weeks at an estimated cost of $ 12-14,000. They also have 48,000 ETH and 1,315 MKR at this address, ”detailed Nick C. The Twitter thread also gives a breakdown from the challenge action of Jump Trading as well as Nick C notes that Jump Trading is “a huge Chicago-based accessories trading company”. The researcher went on to add:
[Jump Trading] are also big investors in Ethereum tokens.
Nick C’s ideas earned him a huge following on Twitter after sharing his thoughts on the three companies and the Defi action. After posting the thread, Nick C had a few thousand subscribers and he said it would “continue to post high-signal content when I had the time.”
The perspective Nick C shared on Wednesday shows how the Challenge Economy displays highly visible content on the channel, and it’s a lot less private than most people think.
What do you think of all of Defi’s exploits these days and the visibility of transactions and million dollar onchain transactions? Let us know what you think of this topic in the comments section below.
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