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Igor Igamberdiev Profile picture
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4 Feb, 4 tweets, 1 min read
Ok, new DeFi exploit.

Victim:
- @iearnfinance

Attacker profit:
- 513k DAI
- 1.7M USDT
- remaining 506k 3CRV (~$1)

To obtain such a profit, the attacker executed 11 transactions.
Below is a very superficial explanation of what was happening in these transactions👇
1/ Flash loaned 116k ETH from dYdX
2/ Flash loaned 99k ETH from Aave v2
3/ Borrow 134M USDC and 129M DAI using ETH as collateral on Compound
4/ Add 134M USDC and 36M DAI to 3crv Curve pool
5/ Withdraw 165M USDT from 3crv Curve pool
6/ Repeat five times👇
- Deposit 93M DAI to yDAI vault (less w/ each time)
- Add 165M USDT to 3crv pool
- Withdraw 92M DAI from yDAI vault (less w/ each time)
- Withdraw 165M USDT from 3crv pool
7/ In the last time withdraw 39M DAI and 134M USDC instead USDT
8/ Repay Compound debts
9/ Repay flash loans
Each time the attacker had more 3crv tokens, which he was later able to swap for stablecoins.

Lol, it's funny how so many flash loans have been used.
This means that my new research piece about flash loans, which will be released very soon, will be relevant.

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More from @FrankResearcher

Igor Igamberdiev Profile picture
5 Feb
1/7
Flash loans became widely known a year ago, after the first bZx hack.

@TheBlockRes could not skip this topic, given the recent yDAI exploit with the largest use of flash loans yet.

I hope that you’re our Research subscriber and have access to it.
theblockcrypto.com/genesis/93740/…
2/7
A flash loan’s main idea is that the pool that lends funds must receive them back together with fees at the end of the transaction.

Many people know that the concept was proposed by Marble, but few know that someone used it. Image
3/7
@dydxprotocol has supported flash loans since launch, although it was discovered only after the first bZx hack.

Flash loans are absolutely free to use, which is why the $43.6B flash loan volume.

The main borrower is InstaDApp, and tbh I find their use case amazing. Image
Read 7 tweets
Igor Igamberdiev Profile picture
22 Jan
1/8
Due to the high gas price, Ethereum fees are higher than ever.

My latest research piece focuses on one of the ways to reduce fees — gas tokens.

As usual, the piece contains many insights and charts, but here are a couple of thoughts.

Enjoy👇

theblockcrypto.com/genesis/91670/…
2/8
Gas tokens work by reducing the gas amount used by a transaction (gas refund).

The mechanics are as follows: a smart contract is created at a low gas price together with a token, which is then destroyed at a high gas price.
3/8
Until recently, the most popular gas token was GST2.

Token creation and destruction peaked in March 2020, when the market reached a local bottom.

This peak can be explained by the widespread use of this token by arbitrageurs and 1inch.
Read 8 tweets
Igor Igamberdiev Profile picture
21 Jan
1/5

Let’s go back to Curve’s SynthSwap and use a real example to calculate the benefits of using it for large trades.

Due to the way Synthetix works, trades using Virtual Synths are divided into two transactions. Consequently, people using SynthSwap carry certain price risks.
2/5
The first transaction:
1) 9M USDT swapped to 8.95M sUSD through Curve sUSD v2 pool (0.5% negative slippage)
2) 8.95M sUSD swapped to 6.69k sETH through Synthetix Exchange (0.3% fee) Image
3/5
The second transaction took place 37 minutes after the first:
3) 6.69k sETH swapped to 6.71k ETH through Curve sETH pool (0.3% positive slippage)

So in this trade, ETH price was $1,341. For comparison, CoinGecko gives us $1,330.6 as ETH price, but what about the slippage? Image
Read 5 tweets
Igor Igamberdiev Profile picture
19 Jan
1/7

Today is the time for another piece from the DeFi governance games.

And since the gas price is breaking another all-time-high, it's time to discuss how gasless voting and Snapshot work.

theblockcrypto.com/genesis/90887/…
2/7

Just look at the cost of governance participation for the protocols discussed in the previous series.

Do token holders really have any incentive to participate if they are spending $10+ on voting, which they may not be interested in at all?

I don’t think so Image
3/7

Earlier, it was already mentioned that Compound governance framework provides an opportunity to perform gasless voting using EIP-712.

However, the infrastructure using these signatures for governance is just beginning to evolve. Image
Read 7 tweets
Igor Igamberdiev Profile picture
10 Jan
The significant growth in new weekly Twitter followers affected not only crypto exchanges but also many others.

For example, the new weekly followers of coin accounts have reached levels of early December 2017.
Interest in cryptocurrency wallet providers and popular sites like Coinmarketcap is at the level of early February 2018.
The Twitter accounts of data providers and research companies did not have a long history back then.

At the moment, indicators of interest in them are breaking historical records.
Read 4 tweets
Igor Igamberdiev Profile picture
8 Jan
1/6

Shortly, Curve will start supporting a new @synthetix_io feature - ‘Virtual Synths.’ Presumably, this will open the door to infinite liquidity for large trades.

Along with this, Synthetix Exchange had record trading volumes a few days ago.

But is everything so good? Image
2/6

A week and a half ago, @lawmaster noticed that all these volumes belong to a few specific addresses.

For some reason, these addresses were using the new ‘Multi-Collateral Loans’ feature, although they were not receiving any visible profits.

3/6

Without these “wash” traders and the DeFi summer mania we experienced, volumes on Synthetix rarely exceed 1 million.

And to a great surprise, people rarely use DEX aggregators to trade “synth-synth,” despite the ads.

Read 6 tweets

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