Blockchain

Warp Finance to use Chainlink price feeds to resist flash loan attacks

The post Warp Finance to use Chainlink price feeds to resist flash loan attacks appeared first on AMBCrypto.

Published

2 months ago

January 8, 2021

Republished by Plato

Warp Finance was in the news last month after it took to Twitter to expand on a “complex flash loan attack” it was a victim of. In the said incident, bad actors managed to borrow more than the collateral value, while also resulting in the loss of $7.7 million worth of stablecoins from the protocol.

2/ The exploiter was able to remove $7.7m of stablecoins. The team has a plan to recover approximately $5.5m that is still secured in the collateral vault. Upon successful recovery, these will be distributed to users who experienced a loss.

— warp.finance (@warpfinance) December 18, 2020

It should be noted, however, that Warp Finance was able to recover 73% of users’ funds. Recently, the project also revealed that its team has been in contact with multiple security experts since the incident, with their intention being to determine “the next best steps for ensuring a safe relaunch” of the protocol.

Having concluded that mission, Warp Finance today announced that it has decided to integrate Chainlink price feeds, a development the team believes will help secure the relaunch of the protocol.

In the said announcement, the protocol also stated that the cause of the exploit was an insecure, gameable price oracle. This is the reason why the Warp Finance team has dubbed Chainlink as the most robust oracle solution in the market, one that could help them protect their ecosystem.

“Our research and due diligence concluded that Chainlink was the most secure, reliable, and proven oracle solution, and will protect the Warp Finance ecosystem from similar flash loan-funded price oracle attacks moving forward.”

Additionally, Chainlink price feeds will be used for DAI/ETH, BTC/ETH, USDT/ETH, and USDC/ETH.

The Warp Finance team also lauded Chainlink for the oracle provider’s performance and successful operations during periods of extreme blockchain network congestion and unexpected hardforks in the past. In fact, the protocol also highlighted how Chainlink’s oracle nodes are security-reviewed and operated by professional DevOps teams. The announcement added,

“Backed by proven cryptoeconomics, high-quality data, and provably secure and reliable oracle infrastructure, Chainlink’s time-tested and battle-hardened Price Feeds will ensure the Warp Finance protocol is resistant to flash loan attacks.”

To date, the oracle provider has been integrated with more than 300 projects, with 29 such integrations taking place in October 2020 alone. This list includes 74 blockchains, 98 DeFi projects, 23 data providers, 44 nodes, and many more.

Source: https://ambcrypto.com/warp-finance-to-use-chainlink-price-feeds-to-resist-flash-loan-attacks

Related Topics:blockchain DeFi ecosystem exploit Finance flash loan funds Infrastructure News Research Security Stablecoins

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Blockchain

Ethereum EIP-1559 Targeting Gas Fee Challenges to be Implemented in July

Published

23 mins ago

March 7, 2021

Republished by Plato

The contentious Ethereum Improvement Proposal (EIP) 1559, will be included in its codebase in July this year. This became clear during the All Core Developers call today.

EIP 1559: What Does it Mean for Fees?

Ethereum’s Improvement Proposal 1559 is aimed at improving the overall Ethereum’s user experience when it comes to transaction fees.

Typically, a user would have to send a gas fee to a miner for their transaction to be included in a block. What EIP-1559 proposes, however, is to send that gas fee to the network itself. Called basefee, this is a sort of a “burn” and there would only be an optional tip that’s paid to the miners. The burnt fee would be set algorithmically, supposedly improving the UX.

The proposal was originally submitted by Eric Conner and its summary provides an overall outlook at what it attempts to achieve:

A transaction pricing mechanism that includes fixed-per-block network fee that is burned and dynamically expands/contracts block sizes to deal with transient congestion.

During today’s All Core Developers call, it was decided that it will be included in the so-called London hard fork coming this July.

Some Miners Disagree

Despite the potential improvements on the entire network that could come with EIP-1559, some of the largest Ethereum mining pools have openly displayed division on where they stand.

F2Pool, the third-largest ETH mining pool with over 10% hashrate share, shared a post, in which it supported the initiative, claiming that it would ultimately have a positive impact.

The publication says that “the general community along with core developers are siding with evolving Ethereum to include EIP-1559. It is important to side with the users and core contributors.”

F2Pool’s statement also argued that the potential EIP-1559 implementation could be factored in ETH’s price, which is more than 100% from the start of the year.

In contrast, though, the largest mining pool with nearly 25% share of the hashrate, Sparkpool, didn’t feel the same way about the integration as it could reduce the profits. They took it to Twitter to emphatically assert that the mining pool “opposes EIP-1559.”

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Source: https://cryptopotato.com/ethereum-eip-1559-targeting-gas-fee-challenges-to-be-implemented-in-july/

Blockchain

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Published

48 mins ago

March 7, 2021

Republished by Plato

Uniswap broke out past the $29.3 level of resistance, while Crypto.com Coin was in a phase of consolidation. Compound bounced off the $450 level of support to touch $500 but could see a pullback to $470.

Uniswap [UNI]

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Source: UNI/USDT on TradingView

UNI broke out and went past the $29 area of resistance, where the 23.6% retracement level and the $27.3 level of resistance lay. The upward move had extraordinary volume as UNI touched $31.54 but some selling pressure was seen in the subsequent trading session.

The Doji candle represented short-term exhaustion from the bulls, and the breakout could see UNI pullback to test the $29.3 level to confirm its flip from resistance to support.

The MACD showed strong bullish momentum behind UNI. Bearish divergence on the hourly chart between momentum (MACD) and the price could be seen in the coming hours, which would likely see UNI pullback to $29.4. This can be used to enter long positions, with a stop-loss just at $28.7.

Crypto.com Coin [CRO]

Source: CRO/USDT on TradingView

The Bollinger bands showed that CRO was in a phase of consolidation at and around its 38.2% retracement level at $0.152. The RSI moved back above neutral 50 to indicate that momentum was swaying towards the bulls’ side.

The defense of the 50% retracement level at $0.127 and the immediate bounce-off was a show of strength from bulls – the $0.146-$0.152 region can be used to accumulate CRO in expectation of another move upwards. The $0.173 and $0.189 levels are levels of resistance to watch.

Compound [COMP]

Source: COMP/USDT on TradingView

Compound saw a strong bounce-off at the $450 mark which represents a 23.6% retracement for COMP’s move from $205 to $573. At the time of writing, COMP faced some resistance at the $500 area.

Moreover, the Awesome Oscillator on the hourly chart displayed a bearish twin peak set up and gave a sell signal. This development, followed by the AO registering bearish bars on its histogram, is likely to see the price dip to $470. Bulls would need to show some strength at $470, or bears can drive the prices lower to $450 once more.

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Source: https://ambcrypto.com/uniswap-crypto-com-coin-compound-price-analysis-07-march

Blockchain

Pakistan: Arrests made in Bitcoin extortion case

Published

2 hours ago

March 7, 2021

Republished by Plato

The world of finance has never been able to protect itself from the fraudulent activities going around in the world. The cryptocurrency market, which itself is a growing space has also had its fair share of such fraudulent activity being associated with it. However, unlike traditional finance, regulators have been enforced stringent measures when it comes to tackling such offenses.

A recent case has been reported in Pakistan, where the police have arrested several people part of the country’s first extortion case via crypto. According to reports, the police arrested the owner of an outhouse where the complainants, two foreign nationals, were held hostage along with two other suspects.

One of the suspects was identified as Rana Irfan Mahmood and a case has been registered against him and an unidentified accomplice. The hostages were Swiss national Maria Spari and German citizen Stephen [last name remains unknown] who were kidnapped by three men in police uniform along with another person.

After threatening the hostages with a fake drug smuggling case, the victims paid 6,300 euros in cash and made an online transfer of 1.8 Bitcoin which was close to $9k. The suspects made a fake video demanding an additional Rs 300 million [$1.91 million].

According to SSP Investigation Abdul Ghaffar Qaisrani, the police have managed to recover the amount paid to the facilitator apart from the Bitcoin. The crypto has already been transferred to another account and the team was taking assistance from the intelligence agencies to recover it.

Although the regulators in Pakistan have been taking note of Bitcoin and crypto, illicit activities have been a growing concern in the region. In November 2020, the Central bank clarified that it was not banning crypto, contrary to the prevailing fear within many in the crypto-community.

In fact, Pakistan’s Securities and Exchange Commission [SEC] published a paper on the regulation of cryptocurrency trading platforms. This paper outlined the regulatory approach to crypto and included recommendations given by the Financial Action Task Force [FATF], as well as regulations presented by Malaysia, Hong Kong, and the U.S.

However, the police in the country have warned users and the government about the rising cases of ransom and extortion related to crypto. Bitcoin has been at the center of these cases and such fraud activities will only instill fear with the lack of regulation among crypto users in the region.

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