Hackers are at it again, and this time they hit it big time.
According to a tweet from smart contract research company BlockSec, decentralized finance platform Fei Protocol and Rari Capital are the latest victims of cybercriminals.
Fei Protocol issued a $10 million bounty to hackers in an attempt to negotiate and recover a significant portion of the nearly $80 million in stolen funds from several Rari Fuse pools.
BlockSec disclosed that the hacker took advantage of a “reentrancy weakness” in Rari’s Fuse lending protocol.
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In a tweet, BlockSec said:
“Our monitoring system identified many pools associated with Rari Capital and Fei Protocol as having been targeted, resulting in a loss of over $80 million.”
Fei is trading slightly below its peg, at $0.9894, late Sunday.
Same Type Of Vulnerability
According to a tweet from PeckShield, the same weakness has been exploited by hackers to target additional forks of the Compound DeFi protocol.
Fei, the algorithmic stablecoin dubbed the “Stablecoin for DeFei,” had also added liquidity to Rari Capital’s exploited pools.
On the other side, Rari Capital is a permissionless lending protocol that enables users to create Fuse pools for the purpose of supplying and borrowing ERC-20 tokens.
Based on CoinGecko data, Fei has a market capitalization of more than $500 million, making it the 11th largest stablecoin.
ETH total market cap at $322.5 billion on the weekend chart | Source: TradingView.com
Fei Hack One Of The Biggest In History
While reentrancy vulnerabilities have been the primary cause of numerous exploits by hackers inside the DeFi ecosystem, the Fei Protocol exploit’s $80 million loot makes it one of the biggest reentrancy hacks in history.
BlockSec posted a snapshot of the attack, with the phrase “One picture is worth a thousand words,” indicating that the hacker took crypto assets in Wrapped ETH.
Last year, Fei Protocol and Rari Capital joined forces following a unanimous vote in both communities. The consolidation was intended to help bootstrap liquidity for the Fuse pools, with FEI supplying the initial liquidity.
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Hackers Busy Since Last Year
In May 2021, Rari Capital was the victim of a separate exploit, in which a cybercriminal stole $10.5 million in customer cash, or around 2,600 ETH.
To further analyze and neutralize the intrusion, Rari’s internal and external security engineers collaborated with DeFi service provider Compound Treasury.
As the crypto community battles fraudsters on an ongoing basis, various projects and protocols have decided to beef up their safety nets.
Last week, the Ronin Network and Sky Mavis announced intentions to improve their smart contracts in the aftermath of the previous month’s $600 million theft by hackers.
Featured image from Coingape, chart from TradingView.com
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Next Big Crypto Sector – NFTs? https://www.youtube.com/watch?v=r5pNBx9WPug&t
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– TIMESTAMPS –
0:00 Intro
2:15 What are NFTs?
5:59 Why could NFTs be huge?
10:39 NFT marketplace competition
11:41 What is Rarible?
15:05 RARI token use-cases
18:18 RARI tokenomics
20:47 The future of Rarible
22:20 Final thoughts
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Useful Links
► Rarible marketplace: https://app.rarible.com
► NFT token sales hit $100M: https://decrypt.co/34364/nft-token-sales-hit-100-million-as-virtual-economy-booms
► L’Atelier virtual economy report: https://atelier.net/virtual-economy/
► Coincheck & Enjin partnership: https://decrypt.co/41295/minecraft-nfts-coming-this-year-as-coincheck-partners-with-enjin
► Rari token info: https://medium.com/@rarible/introducing-rari-the-first-governance-token-in-the-nft-space-5dbcc55b6c43
► Yearn.Finance smart contract insurance: https://twitter.com/rariblecom/status/1303802405562314756
► Messari research report: https://messari.io/article/a-rarible-opportunity-in-the-war-for-nft-supremacy
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What Are NFTs
Non-fungible tokens are essentially digital collectibles. These special cryptographic tokens have four key properties:
► Cannot be counterfeited
► Cannot be replicated
► Cannot print to demand
► Have ownership guarantees
There are two main types of NFTs:
► ERC-721 tokens: An example would be a crypto kitty.
► ERC-1155 tokens: This combines the benefits of both fungible and non-fungible tokens together.
Why Could The NFT Market Explode?
NFTs burst onto the scene in 2017 and since then total NFT sales has hit over $100 million.
I think the main driver for the sector in the future will be computer games. Right now, the virtual economy has reached 2.5 billion people and people are spending over $100 billion a year on virtual goods like Vbucks.
Minecraft is an immensely popular game with over 126 million players. Recently, Coincheck and Enjin have partnered up to create an NFT for the game. Even more exciting, these Minecraft NFTs will come to the game this year.
On top of that, you have blockchain art, blockchain domains and other games taking off. All of these use NFTs.
NFT Marketplace Competition
Right now, OpenSea has the lead when it comes to total NFT marketplace volume. However, the new kid on the block, Rarible, has been on a tear this September and has over 10x the NFT sales as OpenSea.
What Is Rarible?
Rarible aims to be the first decentralized and community owned marketplace for NFT assets. Indeed, the ultimate goal of the project is to become a decentralized autonomous organisation, where platform users call the shots.
The marketplace has some pretty cool features that I go into in the vid.
In terms of innovation, Rarible has recently announced support for NFT tokens representing Yearn.Finance smart contract insurance, underwritten by Nexus Mutual. That means you can insure you DeFi dabbling against smart contact failures – pretty useful.
Also, you should know that Rarible is entirely non-custodial and supports the Fortmatic, WalletConnect and WalletLink wallets.
Both ERC-721 and ERC-1155 tokens are supported on the platform.
RARI Token
Rarible aims to become a DAO and a key part of making that happen is a governance structure. That’s why they issued RARI as a governance token. Right now, there are two main things you can do with it:
► Community voting: The submission or voting on proposals to improve the marketplace.
► Curation: This is when the community decides which NFTs should be featured on the marketplace.
Voting rights are highly valued in traditional businesses. I go into that in more detail in the content.
Tokenomics
Watch my video to hear my insights on the tokenomics of RARI.
Future of Rarible
The Rarible team has a plethora of different products and services in the pipeline. This includes things like NFT market indexes, price discovery mechanisms for NFTs, a mobile app, social features, DeFi NFT’s, fractional ownership and more.
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Disclaimer
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
#rarible #RARI #NFT #ethereum #cryptocurrency #defi #blockchain
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