One of the most underrated defi protocols in crypto. Only the $bold can take advantage of it.
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Liquity Protocol Faces Backlash after April Fools post triggered $LQTY price spike and raised concerns over market manipulation.
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Drift lost $280M to an admin key exploit.
A big issue is that most 'DeFi protocols' are not actually decentralized at all.
Wanted to give a shoutout to the teams that take decentralization seriously:
Liquity - Liquity V2 is one of the only stablecoin protocols with fully immutable code and no admin keys
Uniswap - Uniswap AMM smart contracts have been immutable from the very beginning
Aave - Aave uses a 5-of-9 multisig wallet that can pause the protocol in case of an emergency, but only AAVE DAO can approve a code change
Curve - Curve Finance is controlled by Curve DAO and is one of the very few protocols that use decentralized oracles
Sky - All major changes to Sky have to be voted by the DAO and they are enforced only after a mandatory delay that acts as a safety checkpoint
I am sure there are also others, but those are a few well-known examples.
defi is fucked lol
drift just got drained for $200M+ and here's how:
- attacker minted 750M fake tokens
- made a raydium pool with $500 liquidity, priced at ~$1/token
- compromised admin key listed the fake token on drift
- disabled all withdrawal guards in one tx
- deposited $785M of fake "collateral" and drained every vault in 31 txs over 12 minutes
- nobody noticed for an hour
- attacker came back 2hrs later to grab a few more million
the multisig was 2/5 with a 0-second timelock. $200M+ protected by two signatures and zero delay.
and people wonder why nobody takes this industry seriously
