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How a DeFi Trader Made $290,000 With Just $200

After exploiting a bug on a DeFi protocol, the trader behind the move quit their day job.

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In brief

  • A DeFi trader took home 747 ETH in a single trade last week.
  • They had exploited a DeFi smart contract.
  • They quit their job.

A week after turning $200 into $290,000 with the click of a button, the DeFi user behind the coup came clean. “I am the malicious actor who pulled the rug on innocent chads,” tweeted a pseudonymous trader named Amplify.

A “chad”, if you’re wondering, is a powerful man who effortlessly sleeps with lots of women. In this case, Amplify drew power from effortlessly exploiting a bug in a derivative of $YFI, the governance token that powers the yearn.finance DeFi protocol. Or as Amplify put it: “Accidentally pulled the rug on thousands of people by exploiting a bug I didn’t know existed.”

The project Amplify claims to have ripped off is called Soft Yearn Finance (SYFI), whose sole purpose is to track the price of $YFI. $SYFI has a “rebase” mechanism, meaning that its protocol resets the price every time it deviates from $YFI. It achieves this by destroying or minting tokens from the balances of its holders. 

On September 3, $SYFI’s rebase function messed up. Amplify reported the play-by-play via tweet: “So there I am 2 minutes before Rebase with my 2 $SYFI I bought for $100 each, waiting for my key to this aforementioned citadel of confusion.”

They then looked at Uniswap, a decentralized exchange that supports $SYFI trading, when they noted, “2 $SYFI turns into 15,551, and subsequently the price quote for these tokens being over 740ETH.” 740 ETH was about $250,000 at the time of Amplify’s transaction and has since gone higher.

Amplify’s first thought: “This is a UI bug, it’s going to bait me into sending a transaction I know will fail because of insufficient output amount.” Amplify’s second thought: Okay, fine. If it doesn’t work, they’d just lose “$20-$50 of fees.”

It worked. That transaction giveth to Amplify, but taketh away from everyone else. The project has since collapsed. 

Amplify, who said they worked a minimum-wage job at the time, clarified that they didn’t mean to do anything malicious: “I saw an opportunity, or trade if you will, and I took it.” If Amplify didn’t exploit it, someone else would have. 

Not that there’s much guilt. Amplify told Decrypt: “It seemed clear from the beginning that the community for SYFI was there simply to make money.” In a community full of traders, it’s reasonable to assume no one did much due diligence on the team or their credibility. 

“People still rightfully believe the devs failed to audit their code and produced a buggy product. It’s no one’s fault but their own,” Amplify told Decrypt

Amplify said that they have a bounty over their head and that friends are worried about their safety. Amplify sent one friend a “finder’s fee” for introducing them to SYFI. “So his address was clearly implicated in the ‘crime’ at the time,” they said. 

Now much richer, life has changed for Amplify. They quit their day job and said they have given about $10,000 to a Gitcoin grant.

“I’ve worked a minimum wage job most of my life,” they told Decrypt. “If I can intelligently apply this wealth properly I can ensure my family will not struggle for basic needs, like a running car.” Most of the money, though, is going straight back into YFI vaults—the actual YFI, this time.

But their pledge of innocence remains. “I did not know this bug in $SYFI existed. I simply pressed a button because I saw something unbelievable on the other side,” they tweeted.

Wouldn’t you?

Source: https://decrypt.co/41380/how-a-defi-trader-made-290000-with-just-200

Blockchain

Tether Gets 500 BTC Ransom: Sender Threats to Leak Harmful Documents

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Tether, the company issuing the most widely-used stablecoin, USDT, has revealed that it got a ransom demand for 500 BTC. The sender has threatened the company to leak documents to the public that would “harm the bitcoin ecosystem.”

Tether Gets a 500 BTC Ransom Demand

Tether, the issuer of the popular USDT stablecoin, took it to Twitter to reveal that someone had threatened to leak documents to the public in an attempt to “harm the bitcoin ecosystem.”

The company explained that “forged documents are circulating online purporting to be between Tether personnel and reps of Deltec Bank & Trust and others. The documents are bogus.”

Furthermore, Tether explained that they’ve also received a ransom demanding 500 BTC, which is currently worth around $23.6 million. They also revealed that unless the ransom is paid, the sender would “leak documents to the public in an effort to harm the bitcoin ecosystem.” Also, Tether has no intention of paying the money.

What Now?

At the time of this writing, there’s no further information on what’s going to happen next.

It is unclear whether this is a basic extortion scheme like those directed at other crypto companies or people looking to undermine Tether and the crypto community as a whole. Either way, those seeking to harm Tether are getting increasingly desperate.

The company also said that the “forged communications and the associated ransom demand” were reported to law enforcement.

Interestingly enough, all of this comes about a week after Tether and Bitfinex reached a settlement with the office of the New York Attorney General, putting an end to a year-long lawsuit that many thought could really harm the ecosystem. Nevertheless, the company admitted to no wrongdoings and agreed to pay an $18.5 million fine.

However, as part of the settlement deal, the company has also agreed to no longer be able to deal with customers from New York.

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Source: https://cryptopotato.com/tether-gets-500-btc-ransom-sender-threats-to-leak-harmful-documents/

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Blockchain

Litecoin Price Analysis: 01 March

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The cryptocurrency market has been moving in a wave-like fashion with continuous crests and troughs. The market has been seeing spurts of growth in the price, but it did not trigger a price swing. Litecoin [LTC], also witnessed such a push in its price recently, but at the time of writing, the coin continued to move within a tight range.

The digital asset has a market capitalization of $10.99 billion and was being traded at $163.94.

Litecoin 1-hour chart

Source: LTCUSD on TradingView

The above chart of Litecoin has been noting the price consolidation between $155 and $181. Before the drop to this level, LTC was trading between $169 and $181 for a while. However, sudden selling pressure pushed it to this new price level.

This could mean that the LTC market may further this phase of consolidation as momentum in the Bitcoin market also noted a similar trend.

Reasoning

The Bitcoin market has been pushing the price of most altcoins in the market. Now that, the digital asset moves sideways after a little pump, the alts are also showing signs of consolidation.

Litecoin has shown that the volatility in its market has comparatively decreased as the Bollinger Bands converged. Meanwhile, the 50 moving average and signal line were beginning to witness a bearish crossover, which could be just a sign for the price to retrace within the above-mentioned range.

The Relative Strength Index has climbed to equilibrium due to the boost in price. This meant that the buyers and sellers were equal in the market, and hinted towards yet another spell of sideways movement for LTC. Meanwhile, the awesome oscillator noted the lack of momentum in the market.

Conclusion

The current trend prominent in the LTC market was of consolidation between $155 and $169. There has been bearishness evolving in the market, but the price swing may not be visible in the short-term.


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Source: https://ambcrypto.com/litecoin-price-analysis-01-march

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LetsExchange Launches Crypto Trading Service With Smart Exchange Rates

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LetsExchange Launches Crypto Trading Service With Smart Exchange Rates

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For each trade, LetsExchange instantly selects the best rate across the world’s leading crypto exchanges and lets the trader secure this rate at the beginning of the transaction. 

Cryptocurrency trading can be a very lucrative activity. Because of the price volatility of many coins, the possibilities to make gains through short-term trading are big. Two factors influence the outcome of a trade. First, the trader must buy crypto at the best possible rate. And second, the trader must be able to buy or sell the crypto assets without delays.

The LetsExchange platform has been designed to maximize traders’ gains by facilitating the two factors mentioned above. With the use of this service, traders can get the most profitable exchange rate available on the market at a given moment. What’s more, the platform ensures that the said rate remains unchanged until the trade is completed.

This newly launched service also eliminates delays in the processing of transactions by waiving registration, KYC screening, and other authentication and authorization procedures. The platform’s founders elaborate on these features that allow traders to maximize their gains:

  • The registration process and KYC authentication are time-consuming. Traders usually cannot afford to waste much time in such procedures as the cryptocurrency market is volatile, and exchange rates may change significantly within a few minutes. With LetsExchange, traders can benefit from these fluctuations by buying and selling cryptocurrencies as soon as they decide, without hassle and delays.
  • LetsExchange works with the world’s top crypto exchanges including Binance, Okex, KuCoin, Gate, Huobi, and more. By using its SmartRate technology, the platform always offers the most profitable rate across all the exchanges. In this way, traders won’t waste time in comparing rates and researching the market status at a given moment.
  • This platform offers the possibility to secure the most profitable exchange rate by selecting the Fixed Rates option. This feature will maintain the said rate unchanged until the completion of the trade. But if a trader prefers to forecast the rate fluctuations in a bid to maximize their gain, the floating rates option allows doing it. Each trader has the freedom to choose the most convenient strategy.
  • Thanks to the use of fully automated exchange algorithms, the only delay in the processing time of a transaction depends on the network speed of the selected cryptocurrency. During Beta testing of the platform, the average transaction time was 25 seconds.

The LetsExhange platform at https://letsexchange.io is now ready to help traders maximize their gains by guaranteeing the best rates and eliminating unnecessary delays.

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About LetsExchange

LetsExchange is a one-stop multicurrency exchange service free of registration, limits, and complications. It supports 210+ coins, about 45,000 currency pairs and automatically selects the best rate across all major crypto exchanges for each trade. Built by a team of crypto visionaries with 10+ years of experience in the blockchain space and fintech, LetsExchange saves your time at each step of a crypto swap and amplifies your trading revenue.


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/letsexchange-launches-crypto-trading-service-with-smart-exchange-rates/

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