Značka: DeFi

Daniele Sestagalli discusses Wonderland’s future after QuadrigaCX co-founder dox

On Friday, Daniele Sestagalli, co-founder of decentralized finance, or DeFi, protocol Wonderland and stablecoin protocol Abracadabra, issued a statement on the path forward after the doxing of his colleague Michael Patryn:“Do we wind down or continue to fight for the aspect of an investment DAO [decentralized autonomous organization] being a revolutionary new organization? For the option that I am for, which is to fight and bring someone new and experienced to manage the treasury.”The day prior, an investor uncovered the identity of Wonderland’s chief financial officer to be Patryn, who was the former co-founder of defunct Canadian cryptocurrency exchange QuadrigaCX. Over $145 million worth of QuadrigaCX customers’ funds are still missing after the mysterious death of its co-founder in late 2018. In addition, Patryn was convicted of operating a credit card fraud scheme under a different name in 2002.Although no allegations of misconduct have taken place during Patryn’s tenure at Wonderland, the thought of appointing an individual with past criminal financial mishaps to manage the protocol’s treasury raised alarms among many Wonderland users. In a forum proposal cited by Sestagalli, its author, co-founder of Bastion trading known as “TheSkyHopper,” calls for the immediate removal of 0xSifu (Michael Patryn) from treasury management and proposed for members of his firm to join in as replacements. One user, El_jefe_NYC, commented:“This is EXACTLY the type of action Dani needed to do in these hard times. That’s how a leader is supposed to react. We will grow back MUCH stronger moving forward.”Wonderland is a reserve currency protocol built on the Avalanche blockchain. On Jan. 2, before the recent crypto market turmoil and the Michael Patryn dox, Wonderland’s treasury balance amounted to $1.9 billion in total value locked. However, that has dropped to $278 million at time of publication.

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Multichain DApp protocol Astar raises $22M in latest round led by Polychain

Astar, a multichain DApp protocol formerly known as Plasm, has raised $22 million in its latest strategic fundraise.The funding round was led by Polychain and saw participation from the likes of Alameda Research, Crypto.com Capital, Digital Finance Group and a few other angel investors. Astar rose to popularity after gaining the Polkadot parachain slot last December and the protocol was officially launched on Jan. 17th.Astar is currently working to become the first protocol to support two virtual machines on its Polkadot parachain- The Ethereum Virtual Machine (EVM) and WebAssembly (WASM). While EVM is currently active, the platform would transition to WASM over time. The Astar team is working with Parity blockchain to push its WASM integration. Being a multichain protocol, Astar supports multiple EVM and non-EVM Layer-1 bridges. Currently, two Ethereum bridges are live and a Cosmos bridge is under development.Talking about the impact of two virtual machines on a single Polkadot Parachain, Sota Watanabe, founder of Astar Network said:“Interoperability is not only a buzzword but also a reality in the Polkadot ecosystem by connecting all parachains with different virtual machines together with XCM. Astar will be the only parachain supporting both virtual machines and at the same time also make them interoperable with each other.”The Astar team said the recently raised capital would be used for hiring industry-leading engineers to implement both EVM and WASM and to invest and nurture Astar native ecosystem projects. Related: 3 possible reasons why Polkadot is playing second fiddle in the L1 raceParachains on Polkadot are individual blockchains running in parallel within the Polkadot ecosystem. These have been in development for five years and mark a breakthrough for cross-chain tech.

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Qubit Finance suffers $80 million loss following hack

High-profile hacks have become more prevalent throughout the cryptocurrency market, and Qubit Finance is one of the latest decentralized finance (DeFi) protocols to be exploited by hackers.Hackers were able to access and steal over $80 million from Qubit Finance which is based on Binance Smart Chain the protocol confirmed via a tweet Friday. The addresses linked to the assault stole 206,809 Binance Coin (BNB) from Qubit’s QBridge protocol. The assets are valued at more than $80 million at the time of writing.Did @QubitFin just get hacked for $80M? Check out this address: https://t.co/1Oao54Ndnb— claudeshannon.eth ⛽️ (@0xclaudeshannon) January 27, 2022QBridge was hacked to create “a huge amount of xETH collateral” that was subsequently used to drain the entire quantity of BNB stored on Q Bridge, according to PeckShield, which analyzed Qubit’s smart contracts.In a report by security firm CertiK, the attacker utilized a deposit option in the QBridge contract to illegally mint 77,162 qXETH, which is an asset representing ether bridged via Qubit. The protocol was duped into believing that attackers had deposited money when they hadn’t.According to CertiK, the hacker carried out these actions multiple times and converted all of the assets to Binance Coin as a result. This makes the exploit the seventh-largest in DeFi, according to DeFiYield Rekt data.Related: Crypto.com shares details on security breach: 483 accounts compromisedThe Qubit team sent out a statement to notify clients that they are still monitoring the hacker and their impacted assets. The blog also notes that we have contacted the attacker to offer the maximum reward as determined by their program. The team has since disabled Supply, Redeem, Borrow, Repay, Bridge and Bridge Redemption features until further notice. However, they indicated that claiming is available.pic.twitter.com/G1WOMglVUU— Qubit Finance (@QubitFin) January 28, 2022

Hacks, rug-pulls, and protocol exploits are all common in the cryptocurrency sector. Earlier this month, decentralized finance security platform and bug bounty service Immunefi revealed that cybercrime losses surpassed $10.2 billion in 2021. On Jan. 17, the popular crypto exchange Crypto.com suffered nearly $34 million in losses following a security breach.

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MetaMask's new inbuilt multi-chain institutional custody feature

The institutional arm of the Consensys-owned MetaMask has integrated its first multi-chain digital asset custody solution called Cactus Custody.MetaMask Institutional (MMI) initially partnered with Cactus Custody owned by crypto financial service platform Matrixport in October last year to incorporate its “DeFi Connector” feature into MMI’s suite of services. The full integration with MMI was announced on Jan. 26, and Cactus Custody’s feature will now provide institutional customers with multi-chain connectivity to all Ethereum Virtual Machine (EVM) chains, sidechains and Layer 2s supported by MetaMask such as Ethereum, Binance Smart Chain, Avalanche, Celo and Polygon. MMI product lead Johann Bornman said that Cactus Custody’s multi-chain EVM support will enable institutions to “freely bridge digital assets across these networks.” “This is a profound DeFi offering for institutions.”The DeFi Connector feature will also provide additional security and compliance aspects, such as audit trails for transactions conducted on MMI, private key safeguarding and “role-based approval” processes during interactions with DeFi platforms. MMI was developed in December 2020 and its wallet differs from Metamask as it is integrated with additional security, compliance and custodial features that are vital for the growing number of institutions that are flocking to DeFi. The product aims to give institutional investors exposure to the entire DeFi ecosystem from within their MMI wallets. Its other current custodial partners include top crypto firms such as decentralized custody firm Qredo and multi-signature wallet providers BitGO. Related: Bithumb to block crypto withdrawals to unverified private walletsMetaMask has more than doubled the number of its monthly active users since August 2021, with its website tallying the figure at more than 21 million at the time of writing.

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Why crypto industry needs venture capital: Q&A with veteran investor

Traditional funding in the crypto space was once considered useless. After all, the industry itself offers different, controversial, but nonetheless, ways to fund a project – initial coin offering (ICO), initial exchange offering (IEO) and the current darlings of offerings – launchpads and initial decentralized exchange (DEX) offerings. But with the industry maturing and more startups wanting not only the capital but mentorship to build a working and valuable product, venture capital has emerged as one of the most attractive options. Cointelegraph talked to Li Rongbin, founding partner of SevenX, about why venture capital funding is the next big thing for crypto startups and entrepreneurs.Tell us about your fund.Our company, SevenX Ventures, was launched at the beginning of 2020, so we are a relatively young brand. But all of our three founding partners have around six years of experience in crypto VC. We are one of the earliest VCs to invest in DeFi and NFTs in China. We’ve backed such DeFi projects like Dodo, Zerion, Debank, Furucombo, Daomaker, Vega, etc., and NFT-related projects, including YGG, Alchemy NFT, Rangers, and Whale, etc. Before SevenX, we’ve separately had our own crypto venture funds, based in Beijing and  Shanghai, which were early investors of some great projects, including Huobi, Tron, NEO and others. We decided to merge into one because we want to really gather our experience and knowledge to better deliver value to our portfolios.Why do you think the crypto industry needs corporate investment, given that there are many options to fund a project like ICO and IDO, for instance?We believe in decentralization and really think that a decentralized way of fundraising is cool and helpful. Such kind of fundraising will bring users, publicity and community. But VCs are experienced and have great connections and resources in the industry, which are good for bootstrapping,  There is a debate around whether to take VCs’ funds as an entrepreneur. Sometimes these firms do little help, and they are also the fastest to dump the project in the bear market. But I think the problem really is in how you deal with the communication and utilization of what VCs have to offer in the most efficient way. What kind of companies do you invest in? How do you do your research and due diligence?We love innovations. We are looking for anything that is innovative enough to change the current paradigm of crypto, and we are not afraid of taking risks.More specifically, we are investing in projects with logical reasoning ability and founders who clearly know where it is going. We like imagination, but those bold imaginations should be based on logical reasoning and analysis. We think right now the whole industry is in the very early stage, just like the Age of Exploration.We want to be the backers of those ambitious “captains,” we want to give them support on “the sailing” with “gears like compass, toolbox and knowledge” because we have seen a lot of captains before and used to be captains ourselves (we still are, from an investment perspective).We will provide the capital needed for the voyage, the safety and even sometimes as a crew member. But we need to back the entrepreneurs who know what they’re doing. And we only invest in captains who really want to find the new continent, not the ones who just want to discover another island and ship some goods back.For research, we always map a specific market to form an architect structure, for example, what is the foundation of the whole DeFi direction, or how many pillars should it really have? We then analyze the driving forces or impact factors behind it. We have a so-called “get-BTC” model to analyze a product from six different aspects, including governance, economy, team, business model, technology and community.What matters most when investing in a crypto company – the product or the team?I would say that at an early stage, the team matters most as products could evolve as time passes by. But people are hard to change. We’re also interested in investing in teams that have seen failures before.But at a later stage, it is the product that matters most as a lot of things might influence the outcome and lead to failure in this ever-changing market.What’s the most difficult thing about investing in crypto companies and products? What kind of risks are involved?The most difficult thing is that there is too much happening every day in the space. I often sleep for only six hours a day, trying to catch up with the innovations happening all over the world. Sometimes we need to slow down a little bit and think rather than act fast.The risk is that we have to realize we are participating in a great experiment in the whole new world. And it’s definitely not risk-resilient. But how do you change the world without experimenting?What is the most promising direction in the industry right now? Why?But we are looking at potentially interesting directions like the arweave ecosystem. We think it is the backbone of Web 3.0, NFT infrastructure and the new paradigm of NFT utility. Other potentially interesting developments include DID, credit lending, community decentralized autonomous organizations (DAOs), and any type of technology that could bring crypto to mass adoption.What kind of assistance do you provide to the companies you invest in? A compass, toolkit, a supply station. We provide assistance throughout the entire process of product development – from building tokennomics, designing marketing strategy, setting up business development, to recruiting and providing emotional support.Did you ever have an unfortunate experience with projects?For the past two years, so far, so good.What does the future of investment in crypto look like? Do you think it’ll see an inflow of more institutional investment firms?More competition from traditional Web 2.0 giant investors and more small two- or three-men teams that root deep in the ecosystem will take place at the same time.  Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

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