Compensation for Alchemix rugpull and Aave v. 2.5! 16.-23. June

After almost a month of consulting with industry experts and journalists at Cointelegraph and none, we are proud to introduce a new segment for Finance Redefined, also known as the leading DeFi newsletter: Parse on String.

Reporters often look to public records to back up stories, and blockchain is no different. From analyzing fake Banksy NFT artist wallets to tracking miners’ wallets for hacks, the data is used extensively, but arguably not to the greatest extent possible.

For example, there is a well-known wallet owned by Mark Cuban, serial entrepreneur and owner of the Dallas Mavericks. He has often been mistaken, indirectly and directly – the address is the owner of markcuban.eth, for snacks. And yet if he did notification that he invested in Polygon (or a stablecoin pseudo-stable, RIP Titan), that was the news, but when he made the movements on the wallet in real time…. Is the cryptocurrency news industry ignoring this?

However, reporting on wallet transactions is fraught with complexity. As Sam Trabucco of Alameda Research told me in Miami, Alameda wallets that are “doxxed” know they are counterfeit (“infected” is the term they use internally) and attempt to make purchases from a “known” wallet Explaining can only be a sneak peek part of a much bigger picture – Alameda can hedge with another sector, and as such, a public buy / sell is ultimately not indicative of a broader view of a property.

Take a look at this thread about people trying to figure out what Alameda is doing with CRV as an example – the chase and narrative flip are extreme:

Alpha Leaks!
Did you wonder why Sam threw it away? $ CVX Every day?? But rn, he’s buying back !! https://t.co/e7kKO1e2QG
1 / He has to control the price to accumulate more and more! This could be a good sign. @ConvexFinance => FTX soon?

– Goodbye maximalist- $ CRV (@ MrFro92) June 15, 2021

Even if, despite the overwhelming amount of evidence, Mark Cuban ever comes out and says that a wallet is not his – no matter if he has an ENS, no matter if he has even claimed in the past that it is ours – we, as a way out, none Possibility of clearly proving the opposite and therefore the unambiguous association of a natural or legal person with a wallet is unacceptable regardless of the amount of circumstantial evidence.

So we crept, wondered, brooded, and thought more about it. On-chain data is both overtly and overused by news agencies, but it is a new kind of source from a journalistic point of view and is really undiscovered ethically.

Some of the language choices we make may seem a bit confusing, but they are measured and we believe they are reasonable. Let us know what you think.

We hope you enjoyed our first part, courtesy of Bill Zerox aka @ 0xbilll:

Alchemix Rugpull Compensation Analysis

After pulling the carpet, desperate community members often pleaded with the developers to return the stolen funds, and social media channels fell into chaos – filled with stories of tragic losses and poor nurses. Only then does it make sense that the developers in the first “reverse carpet” in DeFi history asked the community to return the money. The big difference is that the community has apparently responded instead of ignoring requests as miners usually do.

Last week, Alchemix ran into a bug that resulted in users throwing 2262 ETH (nearly $ 4.5 million, even with the recent price drop) on the first so-called “reverse carpet”. Instead of using treasury funds or minting a new token, steps other protocols have taken to cover losses after a bug or hack, the Alchemix team will ask the benefiting users to return ETH.

In return, Alchemix promises users 1 ALCX for every ETH returned. If users benefit from the bug of returning the full ETH amount that they can withdraw, generous miners will also receive a “special” NFT that includes “undefined functionality in Alchemix DAO”, according to the team. “

If you benefit from an inverted carpet you should become an Alchemix legend and return the money for free.

Every bit counts and everyone involved will be remembered https://t.co/GqkkIBG9Ma

– lustful people (@scupytroosystem) June 21, 2021

Though unusual – like the best from DeFi – their claim to the community on the surface was a success. However, close inspection reveals that the bulk of the money was donated by a selfless alchemist developer, while the accounts that gave most of ETH away showed no evidence that they would ever return the funds.

On-chain data shows that the majority of the funds “returned” came in the form of community members who donated ETH, as opposed to users who returned ETH that the mistake allowed them to do.

1129.85 ETH was returned this afternoon. Split, 358.21 ETH (~ 32%) came from users who benefited from the bug, while 771.64 ETH (~ 68%) was donated by community members.

The largest donation so far is an unbelievable 730 ETH from a clear alchemist developer with an ENS handle n4n0.eth. They didn’t get ETH from mining, so they’re probably investing their own money – testament to their trust in Alchemix and their desire to make the protocol complete.

When called to do this during the Alchemix conflict, n4n0 simply said, “I joined because of the technology.”

A Twitter profile with the same name lists her role as “codemonkey @ http: //alchemix.fi”.

In addition to the 730 ETH donation from n4n0.eth, 196 other addresses donated a total of 41.64 ETH. While some addresses speculate that donors may be eligible for future airdrops, the answer also suggests that the community wants Alchemix to be successful.

Given the addresses getting surplus ETH from mining, the top 20 addresses went down with nearly 1,800 ETH, ranging from 25 to 500 ETH. Of these, only four addresses have returned the full amount they have received so far for a total of 174 ETH.

One of those addresses, themockingjay.eth, returned 40 ETH which they mistakenly managed to withdraw. Their addresses indicate that they are active DeFi users and early supporters of the Alchemists, as demonstrated by their acceleration in joining Group 2 a few days after the protocol started.

Zerion currently reports themoockingjay.eth net worth in excess of $ 2 million, which shows that they are distinctive of DeFi users who are able to prefer a protocol rather than carry money.

Given the promise of an NFT and the chance to stay in Alchemix / DeFi / Crypto history forever, the answer here should perhaps come as no surprise.

Sign up for the weekly DeFi news before it hits the main page!

2.5 already and Airdrops are coming soon

Like many other DeFi protocols, Aave has no “growing pains” as the project germinates.

Once the perennial top 10 ranking sites, thanks to a very successful liquidity mining program, they are now the ultimate # 1 in DeFi with nearly $ 17 billion in TVL. However, in an interview with Cointelegraph co-founder Aave, Stani Kulechov addressed the same problem currently facing dozen of protocols: How can one continue to grow explosively in an increasingly complex system?

“Now the question arises, how do we continue to grow at the same speed and at the same time increase the growth rate when new projects arise, ideas and innovations arise? He asks.

The first step for Aave is to apply what works to the new environment. The team is working on a governance bridge that will allow users to vote at Level 1 on decisions that apply to different Layer 2 implementations in the marketplace, enabling “overarching decentralized decision making,” Kulechov said. This new feature will be available in a few weeks.

However, there are also major changes:

“We believe the future is multi-asset and multi-governance. […] This means that we will make decisions in the community more holistically. “

Multi-asset governance – let’s say that AAVE and BAL owners vote on an AAVE-specific proposal – would of course be a completely new experiment and would involve community-specific considerations.

In Stani’s opinion, which assets, besides AAVE, determine Aave’s fate largely depend on synergies. Ultimately, it is up to the AAVE owners to vote on who can participate, but Stani is only aiming for protocols like Balancer that have an upcoming deep integration with Aave to put unused AMM liquidity into loan groups – as the first choice in the multi Framework for asset management. MakerDAO is also building a system in which the protocol DAI is stored with Aave, which then uses aDAI as security in special vaults to support liquidity cracking – another deep integration that ensures the inclusion of MKR in the multi-asset governance can.

This is part of a broader framework for the Aave core team to leave the project after the final launch of Aave v3. At the time, the primary users of the Aave protocol (including other protocols can use Aave) should be the one who determines its parameters.

Hence, the day could come when the most important voices on aave governance come from addresses controlled by other governance communities.

What if there was a social media protocol …