Another Day in Crypto #143 - Jump Counter Exploit Story by Blockworks, Jack Inabinet, innitt_ & Factor DAO - and DeFi News & Videos
Curating some crypto content from around the web.
Hello everyone,
How are you? Hope you’re well!
As always - this is most definitely Not Financial Advice.
Everything I express here is only my opinion, and represents my perception of the market, eco systems and communities. And people.
Do not treat any of it as an absolute fact - please do your own due diligence.
Always.
Ok, let’s look at some interesting stuff I found for today.
First - the Blockworks Research story about Jump allegedly performing a counter exploit to the Wormhole exploiter.
Let’s let the tweets tell the story.
Repeat after me.
@smyyguy is THE MAN.
@smyyguy is THE MAN.
@smyyguy is THE FUCKING MAN.
Who else can find insane alpha like this.
The wildest story of this year so far. More to come from @blockworksres
Blockworks Research shared this thread (these are just some of the tweets in it:
We do a little counter exploit.
How Jump Crypto recovered +$200M of stolen ETH.
@smyyguy shows us how🧵
FULL DISCLOSURE
@jump_ has not confirmed the ownership of the wallets discussed in this analysis.
It is the opinion of @smyyguy that the wallets are owned by Jump based solely on the on-chain evidence presented below.
1/
The exploiter behind the infamous Wormhole attack has become the exploited in what appears to be a coordinated effort between Jump Crypto and Oasis.
2/
We published a free report on Blockworks Research that details exactly how the counter exploit was facilitated. This report includes links to all addresses and transactions mentioned below.
The rest of this thread hits the highlights 👇
blockworksresearch.com/research/we-do…
The article by Dan Smith and Jon Rice -
SCOOP: Jump Crypto $140M better off after turning tables on Wormhole hacker.
Via @smyyguy and @JonRiceCrypto
Let’s look at some responses.
adding counterexploit to my lexicon
also highlights how "unsafe" upgradeable contracts are
clean EOAs seems technically the safest, except that they are meatspace vulnerable to $5 wrenches? kek
food for thought, 100% of retail will never have access to this type of remediation
Blockworks @Blockworks_
@DegenSpartan Bruh. Literally nobody is safe now.
Proving once again that most of DeFi is a sham.
Any "DeFi" protocol with a multi sig is now CeFi.
@DegenSpartan Upgradable contracts are uniquely the worst of DeFi and the worst of TradFi rolled into one f'd up mess
DeFi Alex added:
If your big investment in defi are upgradable you’re fked in a pinch. This is why protocols like @CurveFinance that are not upgradable are the ones you should be supporting not the fake defi https://t.co/r9Hib6ppL3
Applebee's (🍔,🍟) @Appleseed_iii
We’ll get back to him later on.
Romy tweeted:
Can anyone gimme more info on this?
Sounds insanely bad tbh
Adam Cochran (adamscochran.eth) @adamscochran
Let’s look at the tweet Romy quoted and one of the discussions about it:
Soooo as much as I love the Wormhole hacker getting pwned, what I don’t love is that MakerDAO’s Oasis Automation has a backdoor that let them seize assets from a user based on a court order….
What happens when US courts demand they seize from US users in the future?
@adamscochran It's not makerdao, it's a company that was spun out of the maker foundation many years ago, and all does is run the oasis.app frontend
@twatt331 @adamscochran Yes but that's whatever users access when they use the frontends advanced automation feature... has nothing to do with the maker protocol
@twatt331 @adamscochran Yes but that's whatever users access when they use the frontends advanced automation feature... has nothing to do with the maker protocol
@twatt331 @adamscochran No, they shouldn’t have had the backdoor at all. If you already have it, then you have to use it for whatever a court tells you. There’s just no way around that, the reality is that it was always a centralized system - likely for the sake of user security
@RuneKek @twatt331 @adamscochran i think you guys in makerdao know about this “backdoor” in Oasis, why the hill you keep it as the default portal for Dai protocol?
Ok, I’m sure a lot more is going to be written on that.
Next story - Jack Inabinet published this - saying that Factor DAO is a scam.
Let’s look at the thread (parts of it), the responses, and some of the discussions about it.
I will leave it to you - as usual - to decide what you think.
And you thought the material evidence was bad???
🚨I HAVE FIRST-HAND PROOF🚨
@FactorDAO and $FCTR are complete and total scams and that @Kurapika_DAO is a bona fide con artist!
Special thanks to @innitt_ for speaking up and bringing this to my attention.
⬇️Let's dive in⬇️
Jack Inabinet @JackInabinet
I have produced material evidence that ties @Kurapika_DAO from @FactorDAO to a scam ReFi project: DAO_Nation.
This chapter of his crypto career was NEVER discussed in any interviews or shared in any written materials.
👇Linked below is my research👇
jackinabinet.substack.com/p/fade-fctr
Jack quoted innitt_:
(1) Here is @innitt_'s original thread describing the absolutely atrocious treatment that she has received in Web3.
cryptolezbruh (cuteness arc) @innitt_
Then a project building on near reached out to me.
We began chatting and before I knew they were asking me to help build their project.
I was stoked! They said I’d be paid when funding came in. (Lol)
⬇️
For those interested, this is the full thread by innitt_ -
after a year and a half of working and believing in the space, I have nothing to show for it because I’m too trusting, nice, and got involved for all the right reasons.
here’s how it’s impacted me
🧵 ⬇️
Ok, back to Jack’s thread:
(2) The Project had @innitt_ register a Wyoming-based LLC to receive a grant payment from @NEARFoundation.
cryptolezbruh (cuteness arc) @innitt_
But in order to get funding they needed an LLC.
Myself and The two others involved researched and decided to register in Wyoming.
I offered to do it Bc I reside in the states and they did not.
Welp, the registered agent we went though didn’t register DAO’s.
⬇️
(3) Six hours she providing the Project requisite paperwork needed to receive funding, @innitt_ was abruptly fired!
cryptolezbruh (cuteness arc) @innitt_
Less than 6 hours later I was told I was no longer needed.
But they still planned on using this LLC that was in my name to receive grant money.
Which meant I was on the hook for the tax implications.
Nice huh?
So I worked 6 weeks for free. Ouch
⬇️
Jack continued:
And added:
(11) I am calling on @CamelotDEX to do everything in their power to freeze this sale and return funds to investors.
Later on, hea dded these:
Also...
Did you know that @FactorDAO was initially supposed to be a token launchpad for DAO_Nation's $ESG?
Jack Inabinet @JackInabinet
LMFAO: @innitt_ strikes again!
How respond you to this text string @Kurapika_DAO?
Hey anon! Did you know that @FactorDAO was intended to be the token launchpad for DAO_Nation's $ESG token?
@Kurapika_DAO is a complete and total fraud who has done nothing but lie thru his teeth!
cryptolezbruh (cuteness arc) @innitt_
@honestlycheers @JackInabinet Like…it speaks for itself
cryptolezbruh (cuteness arc) @innitt_
Neil replied to Jack’s thread:
@JackInabinet @FactorDAO @Kurapika_DAO @innitt_ This has all been thoroughly debunked by the team on discord and twitter. The fact one person failed to launch a product in a bear market is not evidence of a rug
@nothing2cere @JackInabinet @FactorDAO @Kurapika_DAO Lol they didn’t launch bc they couldn’t use an LLC in my name in order to receive their funding. If they did it would have been identity fraud, and Id be responsible for paying taxes on that money.
Bro that’s scamming
@innitt_ @JackInabinet @FactorDAO @Kurapika_DAO So in summary they didn't launch and didn't commit fraud or scam anyone.
Instead they folded the project and had to start all over again
@nothing2cere @JackInabinet In summary FACTOR was originally a part of DAO nation.
As you can see here 👇
@JackInabinet
Neil shared Kurapika’s thread (again, these are just some of the tweets):
@innitt_ @JackInabinet
Kurapika 🏭 @Kurapika_DAO
I woke up to some baseless accusations running around CT about me, personally.
How about I'll tell you my side of things?
Somewhere in 2021, I started DAO Nation. It was a great project with an innovative governance model, which we now somewhat used in Factor.
We were ReFi OGs, starting before the term was coined.
It got approved for a 35k grant by a prominent L1, which was then retracted based on an accusation brought by the former contributor.
TL;DR - we did not receive the grant because the person, that was no longer contributing, feared the tax implications will be pinned on them.
This was never the intention, but it was already too late as the L1 asked to pause it, though they believed us in full.
"PR can be a nightmare, and we can't get ourselves involved".
We had no token, and nobody lost money but us.
I tried so hard to solve this with the former member on good terms, and maybe I didn't do enough.
This is where the DAO Nation story ended.
I was sad, I cried for days, and moved to the next venture.
And here we are today - Factor is 9 months in the making, been doing this full-time ever since, using my own funding.
Call me a failure, call me an idiot - but never call me a fraud.
Have a wonderful, calm weekend everyone - Factor is cooking some great things for tomorrow ❤️
innitt_:
@nothing2cere @JackInabinet And where’s the proof?
I’m not sharing my opinion or simply words, I’m sharing actual proof.
His own words and actions- not mine, his.
Let’s look at what Factor tweeted as well:
🗣️ We listened to community feedback! 2 important announcements:
1. POL increase, deploying 50% of funds raised
2. Ecosystem incentives now vested for 12 months
This brings initial circulating supply down to 18% with the majority in the hands of public sale participants.
/1
The purpose of this is to reduce the circulating supply at launch and put power in the hands of public sale participants.
Aside from a small treasury and ecosystem incentives allocation there all tokens will either be in POL (launch LP) or owned by public sale participants.
/2
The small treasury and ecosystem incentives initially unlocked will not be deployed immediately.
They will be deployed carefully to drive TVL and adoption, and could also be subject to further vesting criteria depending on their usage.
/3
No other tokens for community bootstrapping participants or the team will be in circulation at launch. The first release on those is one month following the LP going live.
Here is the revised release schedule with the lower circulating supply at launch.
/4
blyskwoku replied:
@FactorDAO what do u think about this ?
Jack Inabinet @JackInabinet
@blyskwoku @FactorDAO The timing of the FUD is strange. Why would they not *bravely* bring this up earlier? Signalling theory says they’re lying
@Kiranjaimon Bc I didn’t know they were still around tbh.
I only stumbled across @JackInabinet tweet & read his substack piece. That’s where I learned of it & obv recognized the name & project
I did post about it from my old account, which was axed sadly
Factor was part of DAO Nation
Jack added:
Two random individuals are able to connect on the internet about their concerns over a project and limit the damage it can do to the ecosystem!
👇This is why crypto is people all the way down the stack👇
cryptolezbruh (cuteness arc) @innitt_
Btw, also want to share this regarding stuff related to Factor:
Re: @SpoolFi - We ran a competitor analysis. We had around 5 bullet points from the Spool docs which we omitted to remove in a rush to get docs out as per our deadlines.
It was an honest and embarrassing mistake that was immediately rectified when brought to our attention >>
DefiMoon 🦇🔊 @DefiMoon
We are sorry about that. But to be clear it was a small portion of the docs. No code has been copied, nor other parts of the docs.
The Factor codebase and architecture uses a novel, audited modification of the ERC4626 standard that was built from the ground up.
El reply guy was blunt.
@FactorDAO @SpoolFi @FactorDAO @SpoolFi LMAO even the logo look almost the same,
did you accidentally copy that from their docs too ????
🤣🤣🤣🤣
Defi Moon mentioned the Spool issue on Camelot’s tweet:
After raising $7.5m from over 4k unique wallets, we want to congratulate @FactorDAO for a successful public sale.
$FCTR will exclusively list on Camelot at 6pm UTC tomorrow.
We're proud to be supporting @arbitrum native builders through our custom-built infrastructure ⚔️🤝
@CamelotDEX @FactorDAO @arbitrum I've been contacted by Spool devs today, they will be releasing a statement soon on Factor copy-pasting their work and Camelot supporting this shady launch.
$fctr $Grail
@DefiMoon @CamelotDEX @FactorDAO @arbitrum Is Camelot responsible for cross checking if all their launchpad partners don't have tiny parts of their docs matching with competitor products? Your crusade is ridiculous
@microwavebaby @CamelotDEX @FactorDAO @arbitrum Devs who copy-paste docs .....also tend to copy-paste code ......
And innitt_ was blunter -
Let’s see how this one develops as well.
Ok, moving on.
Next story I want to share is this one about Arcadeum -
That did not age so well, wen bullish tweet delete ? https://t.co/fju6eM2Jib
Jack Niewold 🫡 @JackNiewold
Imagine providing liquidity for GLP, but with a quantifiably proven house edge.
Or just imagine owning the casino.
Proud to announce a @cryptoprag partnership today with @arcadeum_io.
An on-chain platform, with provably fair odds, self-custody, owned by its users.
I asked:
@DAdvisoor @0xrelied Yes this twit will summarize it.
ad_arbitrum 🔺(💙,🧡) @AdArbitrum
Thanks ser!
$ARC @arcadeum_io seems to be building something great, but the team shows weird character and poor community management skills.
Abruptly pulling out of their deal with Presalers then backtracking when a lot of them are showing disagreement.
Bullish ? I dont know
ad_arbitrum added:
Those are not even my screenshots lmao.
I was kicked out of the discord for pointing out the very same possibility ( Presalers dumping)
@arcadeum_io do better and get better mods
@AdArbitrum @arcadeum_io Yeah unfortunately @arcadeum_io have an Admin on discord called Al Capone which ban people for not agreeing with him.
@AdArbitrum @arcadeum_io This has been reversed, pre-sale agreement going forward as normal. More info about @arcadeum_io in newsletter here:
@ArcadeumAce @arcadeum_io Cool, now fire the mod and unban people. Never seen something so good go wrong so quick.
Ok, moving on - onto some DeFi threads, news, updates, videos and stuff.
Let’s start with Chinchilla’s thread:
Few projects gave the first spark to DeFi.
Now, for some reason, they are all at once bringing innovations to the ecosystem.
How will the landscape change after these new releases?
• @AaveAave GHO
• @synthetix_io V3
• @CurveFinance CrvUSD
• @MakerDAO Stark Protocol
0/24
Next - Schizoxbt made me notice this tweet:
Might need to look into keeper more cause this sounds really neat
Keep3r Network @thekeep3r
1/
Today, we'd like to announce the biggest upgrade to the Keep3r Network to date
Introducing new features that make the network more powerful, efficient, and accessible than ever before
Next up - another thing purplepill made me notice other than the opening story - is this:
The average mortgage approval times have gone up 🔼 since the early 2000s [36 >> 45 days] and the cost to originate a single loan has followed suit [$2,345 >> $9,140].
Absolutely mental to me a mortgage origination costs $9,410.
Exciting stuff. Real world benefits.
Gary Basin 🍍 @garybasin
Casually dropping a litepaper on what I've been cooking for four years:
It’s a web3 mortgage brokerage. It’s codenamed Pineapple 🍍 It’s going to reinvent our housing economy.
We’re looking for help. Join us, if you dare.
Read it: pineapple.mortgage
TLDR in this thread
Next up - some Arbitrum news - magicGLP now listed on Vendor Finance:
🧙🏼♂️!
We are excited to see magicGLP listed on @VendorFi!🔥
Adoption grows steadily for the largest $GLP autocompounder on the market!🔮
Are you looking to build using magicGLP and need technical help?🪄
Do not hesitate to reach out in DMs!🗣️
Vendor Finance @VendorFi
1/3 Vendor now supports $magicGLP as both collateral and lend token! magicGLP "lends" itself to be a perfect form of collateral.
magicGLP is @MIM_Spell's auto-compounding GLP token, where ETH yield produced by GLP farming is automatically auto-compounded back into magicGLP.
1/5 How is borrowing $MIM against $mGLP (magicGLP) beneficial to a borrower? Well, first things first, a borrower is NEVER liquidated. Defaults are optional.
Some thing you can do with your $MIM loan:
1) Looping $mGLP
2) Borrow/Lend arbitrage
3) Protection
4) LPing
Vendor Finance @VendorFi
Ok, what about these videos I mentioned?
Let’s begin:
@FlywheelDeFi with another episode of This Week in @fraxfinance - the trio @DeFiDave22 , @0xkapital_k & @traders_insight discuss:
- $FRAX collateral ratio up to 100%
- $veFPIS
- @VesperFi @MetronomeDAO proposal
- Acquiring $YFI $veYFI
& other stuff
The video:
Next -
And btw, this great video (as usual) by @noahseidman also mentions some of the same line of thought imo
& a lot more
An excellent one either way
The video:
And - a quite unrelated one, at least not directly, yet imo, a very relevant show - the All In Podcast.
Not crypto related, definitely don't usually agree with most of what's being said (unless it @DavidSacks speaking) - yet it is a very relevant look into macro and how it's perceived by big players imo
The video:
Alright, another one - the classic Bankless weekly roll up:
Alright, back to tweets.
This is another discussion (or a couple) I want to share with you.
I’m in it for the tech made me notice this:
I’ve noticed that -some eth maxis dislike chainlink, never understood why though.
antiprosynthesis.eth ⟠ @antiprosynth
Let’s look at what he’s referring to.
This was replied to CLG on this tweet.
.@coinbase launching an L2 chain on Ethereum is a smart move, excited to see how @BuildOnBase evolves
With #Chainlink oracle support and a number of Chainlinked dApps deploying on the chain, the ecosystem is looking strong
The path for onboarding the next billion Web3 users https://t.co/qDvKSeIMZk
Base @BuildOnBase
CLG replied:
@antiprosynth @coinbase @BuildOnBase ? You should be happy that Chainlink oracles are being deployed on a new Ethereum L2 chain because it means useful dApps that require oracles like @AaveAave can be deployed, increasing demand for blockspace
Paulean asked:
@ChainLinkGod @antiprosynth @coinbase @BuildOnBase @AaveAave I can see this increasing “supply” of blockspace, but why does another L2 increase demand?
@BigPaulean @antiprosynth @coinbase @BuildOnBase @AaveAave Chainlink increases demand for blockspace, both through oracle updates and the deployment and usage of dApps that need oracles, and increased demand for L2 blockspace means increased demand for Ethereum blockspace
It's net beneficial for everyone
@ChainLinkGod @antiprosynth @coinbase @BuildOnBase @AaveAave Seems like you’re describing a system where you clog ETH with more and more “stuff” in the hopes of driving up the price due to unnecessary scarcity of resources. Do we need Aave operating on another chain or more NFT mints?
@BigPaulean @antiprosynth @coinbase @BuildOnBase @AaveAave Demand for blockspace is how blockchains become economically sustainable, L2 rollups is how Ethereum will scale throughout, and oracles is how useful apps can be deployed
You seem to prefer an empty blockchain with no activity?
@ChainLinkGod @antiprosynth @coinbase @BuildOnBase @AaveAave I actually think I prefer a hashgraph. But it’d be cool if the demand were based more on things like the Siemens bond issuance about which you posted and not on more and more complex ways to exchange worthless tokens hoping to scalp profit. How much of ETH’s state is that?
CLG replied again and added one of his recent threads -
@BigPaulean @antiprosynth @coinbase @BuildOnBase @AaveAave There’s a growing amount of RWA traction on Ethereum and EVM chains generally, especially with MakerDAO, you can see in a recent blog/thread I posted here https://t.co/cuvj6GszQT
ChainLinkGod.eth @ChainLinkGod
This one about RWA:
A mega-trend is on the horizon for crypto
Tokenized real-world assets (RWAs) are now being issued on public blockchains by a growing number of Web3 projects and instituions alike
How and why?
This blog is my thesis on RWAs 🧵
blog.chain.link/tokenized-real…
Ok, back to the response to the original tweet by “I’m in it for the tech” -
I’ve noticed that -some eth maxis dislike chainlink, never understood why though.
antiprosynthesis.eth ⟠ @antiprosynth
@iminit4da_tech I mostly think that when previous attempts at trying to beg the LINK price back up with questionable affinity marketing techniques didn't work (and even backfired), it's quite pathetic to keep repeating that technique.
@antiprosynth Tbh I view CLG as someone who’s more user motivated than profit. CLG tweets have been roughly the same since pre defi summer, I think he’s just passionate about chainlink like you’re with eth. Not everything is tied to a dollar.
Alright. Speaking of Chainlink - a good place to add Minty’s thread -
While many view @chainlink as an oracle solution for price feeds, the Chainlink vision stretches far beyond that.
This thread will cover the value proposition of $LINK and how it can become the foundational layer that connects Web 2 to Web 3.
🧵
Next - Pedro made me notice this by Subli - another one of his newsletters is out! (pedro is the designer I believe)
I’m so grateful to make part of this projet. Hardworking with an amazing team to deliver this newsletter.
Nothing would be possible without the alpha @Subli_Defi
Check the newsletters and the podcast, it’s free and as a great value https://t.co/Yitjv4pWjC
Subli 🦇🔊 @Subli_Defi
The🔴Optimistic Newsletter #4 is out:
- $OP tokenomics
- #Airdrop #2 analysis
- @VelodromeFi V2
- #Crypto market review
- Find the best yield for ur token with @DefiLlama
- Podcast: @AlchemixFi<>@iearnfinance & @VelodromeFi<>@LiquityProtocol
#Optimism
optimismbysublidefi.substack.com/p/the-optimist…
The article:
Speaking of articles - what about the GOAT?
CurveCap:
February 24, 2023: A Dream of Spring 😴🛌💭
DeFi Winter Building Activity Producing Results
youtube.com/live/gLo9tbNZK…
Join us 8 AM PT for a live Llama Party, discussing the massive building activity finally bearing fruit for many protocols around the flywheel.
🧵1/2👇
🧵2/2
Today's article covers myriad updates on $AAVE, $ARCH, $asdCRV, $FRAX, $LQTY, $LUSD, $MKR, $OHM, $pxCVX, $SDT, $SNX, $YFI
So much activity to cover, and surely more we missed. Come chat about it live!
curve.substack.com/p/february-24-…
The article:
And - the llama party:
Another interesting story - by another llama - is this one by Isabell Hunter:
I spent the last few months tracking down what really happened to @VitalikButerin's $1 billion crypto donation to @sandeepnailwal 's Indian Covid Relief Fund @CryptoRelief_– it’s a wild story that includes a Puerto Rican bank and Alameda Research.
Here's what we found...🧵
1/8
And if you want some more updates - another llama can assist:
Turns out if you steal $100M+ that you shouldn't put it into Oasis.
Good to know, I guess.
But let's check out what else has been happening in Defi over the past 24 hours.
🦙 🏫 ⬇️
Alright, let’s start wrapping up.
I told you we’ll get back to DeFi Alex.
All the teams defending staying on multisig are risking our funds. Even for projects you own and like you should be putting pressure on the team to decentralise. For me personally really can’t wait for @fraxfinance to move away from multisig later this year https://t.co/QDQkBNkMEc
TCB @THORmaximalist
The tweet by TCB:
Court ordered the dev team to use multisig & upgrade smart contracts to take over 120 000 $eth.
Team complies.
If you are using a multisig/upgradable contracts, you’re one court order away from gov freezing/seizing your funds.
Blockworks Research @blockworksres
DeFi Alex added:
This is also why I’m super bullish on @AuraFinance there is no team and it strives for real decentralisation
Carnation:
@0xcarnation @AuraFinance If you say team in discord it gets blocked 😂 they defs trying to differentiate it
Another nice tweet:
And let’s end this one with some wisdom by Mohandez:
Introducing - @MohandezCrypto
Nice to spot a talented writer with single digit followers
Remember folks - look forward.
🥂
Mohandez @MohandezCrypto
Are you stuck overthinking past life decisions, or are you actively moving in the direction your future self will thank you for?
You can do it
Thanks for reading everyone, have a great day!
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