Welcome to Finance Redefined, your weekly dose of important decentralized finance (DeFi) insights — a publication crafted to carry you essentially the most vital developments from the previous week.
The attacker who stole $46 million from the KyberSwap protocol has used a posh technique described by a DeFi professional as an “infinite cash glitch.” With the exploit, the attackers tricked the platform’s sensible contract into believing it had extra liquidity out there than it did.
Australia’s tax regulator has didn’t make clear its guidelines on DeFi regardless of Cointelegraph reaching out for solutions. The regulator couldn’t reply whether or not capital positive aspects taxes apply to liquid staking and transferring belongings to layer-2 bridges.
The DeFi ecosystem flourished up to now week because of ongoing bullish market momentum, with many of the tokens buying and selling in inexperienced on the weekly charts.
KyberSwap attacker used “infinite cash glitch” to empty funds — DeFi professional
DeFi professional Doug Colkitt laid out a thread on X (previously Twitter), describing the sensible contract exploit engineered by the KyberSwap attacker who drained $46 million from the protocol.
Colkitt described the exploit as an “infinite cash glitch,” the place the hackers tricked the sensible contract into believing that KyberSwap had extra liquidity than it actually had. Colkitt additionally highlighted that it’s the “most advanced” sensible contract he’s ever seen.
Australia’s tax company received’t make clear its complicated, “aggressive” crypto guidelines
On Nov. 9, the Australian Taxation Workplace (ATO) launched new steering on DeFi. Nonetheless, the regulator didn’t make clear whether or not capital positive aspects taxes apply to numerous DeFi options, comparable to liquid staking and sending funds to layer-2 bridges.
Cointelegraph reached out to the ATO to make clear the brand new guidelines. Nonetheless, a spokesperson from ATO mentioned that the tax penalties of a transaction “will rely on the steps taken on the platform or contract, and the related surrounding info and circumstances of the taxpayer who owns the cryptocurrency belongings.”
With the non-answer, traders may very well be unable to adjust to the doable penalties of the unclear steering.
DYdX founder blames v3 central elements for “focused assault,” includes 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 inside the platform. Juliano mentioned the dYdX blockchain was not compromised and famous that the insurance coverage claims occurred on the v3 chain. The fund was getting used to fill gaps inside 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 is not going to pay bounties to, or negotiate with the attacker,” Juliano wrote.
DeFi market overview
Knowledge from Cointelegraph Markets Professional and TradingView exhibits 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 entire worth locked into DeFi protocols remained above $47 billion.
Thanks for studying our abstract of this week’s most impactful DeFi developments. Be a part of us subsequent Friday for extra tales, insights and schooling relating to this dynamically advancing house.
