Welcome to Finance Redefined, your weekly dose of important decentralized finance (DeFi) insights — a publication crafted to deliver you probably the most important developments from the previous week.
The attacker who stole $46 million from the KyberSwap protocol has used a fancy technique described by a DeFi skilled as an “infinite money glitch.” With the exploit, the attackers tricked the platform’s good contract into believing it had extra liquidity out there than it did.
Australia’s tax regulator has didn’t clarify its guidelines on DeFi regardless of Cointelegraph reaching out for solutions. The regulator couldn’t reply whether or not capital features taxes apply to liquid staking and transferring belongings to layer-2 bridges.
The DeFi ecosystem flourished previously week due to ongoing bullish market momentum, with many of the tokens buying and selling in inexperienced on the weekly charts.
KyberSwap attacker used “infinite money glitch” to empty funds — DeFi skilled
DeFi skilled Doug Colkitt laid out a thread on X (previously Twitter), describing the good contract exploit engineered by the KyberSwap attacker who drained $46 million from the protocol.
Colkitt described the exploit as an “infinite money glitch,” the place the hackers tricked the good contract into believing that KyberSwap had extra liquidity than it actually had. Colkitt additionally highlighted that it’s the “most complex” good contract he’s ever seen.
Australia’s tax agency won’t clarify its complicated, “aggressive” crypto guidelines
On Nov. 9, the Australian Taxation Office (ATO) launched new steerage on DeFi. However, the regulator didn’t clarify whether or not capital features taxes apply to varied DeFi options, comparable to liquid staking and sending funds to layer-2 bridges.
Cointelegraph reached out to the ATO to clarify the brand new guidelines. However, a spokesperson from ATO stated that the tax penalties of a transaction “will depend on the steps taken on the platform or contract, and the relevant surrounding facts and circumstances of the taxpayer who owns the cryptocurrency assets.”
With the non-answer, buyers could possibly be unable to adjust to the potential penalties of the unclear steerage.
DYdX founder blames v3 central parts for “targeted attack,” entails FBI
Antonio Juliano, the founding father of DeFi protocol dYdX, went on X to share the findings of the investigation into the $9 million insurance coverage funds throughout the platform. Juliano stated the dYdX blockchain was not compromised and famous that the insurance coverage claims occurred on the v3 chain. The fund was being used to fill gaps throughout the Yearn.finance liquidation processes.
The dYdX founder additionally expressed that as an alternative of negotiating with the exploiters, the protocol will provide bounties to these most useful within the investigation. “We will not pay bounties to, or negotiate with the attacker,” Juliano wrote.
DeFi market overview
Data from Cointelegraph Markets Pro and TradingView reveals that DeFi’s prime 100 tokens by market capitalization had a bullish week, with most tokens buying and selling in inexperienced on the weekly charts. The complete worth locked into DeFi protocols remained above $47 billion.
Thanks for studying our abstract of this week’s most impactful DeFi developments. Join us subsequent Friday for extra tales, insights and schooling relating to this dynamically advancing house.
