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Showing posts with label Decentralized Finance. Show all posts

DeFiChain: DeFi Boosts with Decentralized Assets

 

Decentralized Finance (DeFi), based on Blockchain and Cryptocurrency, has emerged as a prominent technology. It has grown to become an alternative to the traditional centralized system that relies on financial intermediaries like banks for exchanges or financial transactions. It uses ‘Smart Contracts’ on Blockchain-based technology, allowing users a new way to invest, trade, sell, loan or exchange. 

Limitation of Decentralized Finance (DiFi)

Operating as a small financial system in an emerging global movement, DeFi has become visibly popular in the past few months. Decentralized Finance, via Blockchain, has led to an increase in financial security and transparency for users. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has been able to launch a network of integrated protocols and financial instruments, that are now worth over $13 billion of value locked in Ethereum Smart Contracts. 

However, along with its advantages, there are some limitations of Decentralized Finance. DeFi being a decentralized system does not allow centralized assets to interact, such as stock options, commodities, and indices. 

What is DefiChain?

DeFiChain comes as a rescue for Decentralized Finance. DeFiChain is a Blockchain system specifically dedicated to Decentralized financial applications by introducing decentralized assets, it bridges the gap with the centralized assets without compromising their DeFi platform with centralism. 

A decentralized asset, also termed as dAsset or dToken, is a token on the DeFiChain blockchain that provides you a price exposure to real-world stocks. For instance, for the stocks, TSLA, APPL, FB, there exist dTSLA, dAPPL, dFB, each of which attempts to mirror the price of the real stock. 

These creations can thus allow the DeFiChain user to buy decentralized assets, so now the user is provided with a method of trading stocks on a decentralized system. DeFiChain has now become a groundbreaking system for investors. While a traditional investor, after buying stocks, will only be able to make money once he has earned profit from the stocks. Once a user buys one of their dToken assets, they will be able to put that into a liquidity mining pool. This will not only enable the investor to make a profit from their dToken when it goes up in value, but also make passive income from their dAssets. 
 
DeFiChain, with the introduction of decentralized assets (dAssets), has changed the game for Decentralized finance. With incredible user benefits, be it the decentralization of assets or making incredible passive income, DeFiChain is emerging as a prominent blockchain ecosystem.

Hackers Steal Around $320M+ from Crypto Firm Wormhole

 

A threat actor abused a vulnerability in the Wormhole cryptocurrency platform to steal $322 million worth of Ether currency. 

Wormhole Portal, a web-based application—also known as a blockchain "bridge"—that enables users to change one type of bitcoin into another, was the target of the attack earlier. Bridge portals transform an input cryptocurrency into a temporary internal token, which they then turn into the user's preferred output cryptocurrency using "smart contracts" on the Ethereum blockchain. 

The attacker is suspected to have taken advantage of this method to deceive the Wormhole project into releasing significantly more Ether (ETH) and Solana (SOL) tokens than they originally provided. The attacker allegedly stole crypto-assets worth $322.8 million at the time of the attack, according to reports. As per reports, the attacker acquired crypto-assets worth $322.8 million at the time of the incident, which have since depreciated to $294 million due to price swings since the breach became public. 

While a Wormhole official is yet to respond to a request for comment on today's incident. The firm verified the incident on Twitter and put its site on maintenance while it investigates. The Wormhole attack is part of a recent pattern of abusing [blockchain] bridges, according to Tal Be'ery, CTO of bitcoin wallet app ZenGo who informed The Record about the Wormhole Attack. 

A hacker stole $80 million from Qubit Finance just a week ago, in a similar attack against another blockchain bridge. As per data compiled by the DeFiYield project, if Wormhole officially acknowledges the number of stolen funds, the incident will likely become the biggest hack of a cryptocurrency platform so far this year, and the second-largest hack of a decentralised finance (DeFi) platform of all time. 

Wormhole offered a $10 million "bug bounty" to a hacker. Be'ery pointed out that, similar to the Qubit hack, Wormhole is now appealing to the attacker to return the stolen funds in return for a $10 million reward and a "whitehat contract," which indicates that the platform will most likely not file any criminal complaints against the attacker. 

As per Wormhole's most recent Twitter update, posted on Thursday, February 3, the vulnerability has been fixed. However, as one former Uber executive discovered, such contracts exonerating hackers are illegal in some areas, and authorities may still investigate the hacker.