【Dapp Pocket】DeFi Weekly Report - Third Week of April
This Week's Summary
Last weekend was not a holiday for the DeFi sector. Uniswap and Lendf.Me were successively hit by re-entry attacks, with the latter suffering the highest-ever loss of 24 million USD. On the other hand, stablecoins saw significant developments, with the launch of DCEP initiated by the People's Bank of China seemingly entering the final phase before official launch; the two major global stablecoins, Libra and Celo, made progress, with Facebook's Libra releasing Whitepaper 2.0, which is expected to address concerns about its monopoly from various countries, and Celo Gold, supported by several well-known VCs, confirming its availability for purchase starting May 7th. This week's selected insights include: Ryan Adams comparing regulatory crypto banks to decentralized protocols using a war analogy; Compound founder Robert Leshner commenting on Lendf.Me's copyright violations; and differing opinions from Dharma and Coinbase's bosses on the current hot trend WFH (Work From Home).
DeFi (Decentralized Finance) refers to decentralized financial services. Simply put, it operates on a decentralized model to address issues in traditional finance such as slow transaction speeds, high costs, vulnerability to hacking, and potential misuse by nations or organizations. The current DeFi ecosystem can provide interest-bearing borrowing, shorting assets, high-leverage operations, and even unique flash loan services.
Advertisement - Please scroll down for more content
Table of Contents
Uniswap and lendf.Me Attack Incident: Lessons Learned - Hope There Won't Be ERC777 in the DeFi World
On the morning of April 18th, at 08:58, the DeFi platform Uniswap was attacked by hackers utilizing a reentrancy vulnerability. Approximately 24 hours later, on April 19th (yesterday) at 08:45, another well-known DeFi platform, Lendf.Me, was attacked using similar methods.
The principle of the attack is as follows: The attacker took advantage of the ERC777 token's transferFrom callback mechanism on Ethereum, using the _callTokensToSend callback function to hijack transactions and execute malicious attacks before updating the balance in the _move function.
In the Uniswap attack case, the attacker exploited this vulnerability to deplete approximately 1,278 ETH from the Uniswap ETH-imBTC pool. In the case of Lendf.Me, the attacker used it to arbitrarily increase the internal imBTC collateral amount and borrowed over 10 different assets from other available Lendf.Me transactions (totaling approximately $25.24 million).
Source: https://www.chainnews.com/articles/461365073330.htm
Update on 04/21: Hackers have returned 57,992 ETH and 6,640,886 USDT to Lendf.Me
dForce Founder: Collaborating with Exchanges and Law Enforcement Agencies to Track Hackers - "We Won't Be Defeated"
dForce founder, Yang Mindao, in a public post, recounted the recent attack incident. He mentioned that upon discovering anomalies at 9:00 am that day, the team promptly suspended Lendf.Me and USDx contracts, shut down the website for investigation, and is currently attempting to communicate with the hackers to fully recover the stolen funds. Mindao also outlined several measures to recover stolen funds and resolve the incident, including: 1. Contacting top security companies for a more comprehensive security assessment of Lendf.Me; 2. Formulating solutions with partners to restructure the system, despite the attack, they won't be defeated; 3. Collaborating with mainstream exchanges, OTC traders, and law enforcement agencies to investigate the situation, freeze stolen funds, and track the hackers.
Source: https://www.chainnews.com/news/636723865284.htm
Libra Whitepaper 2.0: What Changes Have Been Made to Comply with Regulatory Requirements?
Recently, Libra released version 2.0 of its whitepaper, where it seems that Libra has finally relented to regulatory demands after persisting to create a basket stablecoin. The new whitepaper has four key updates: first, in addition to multi-currency stablecoins, it will also provide single-currency stablecoins; second, it enhances the security of the Libra payment system through a robust compliance framework; third, it abandons the transition to a permissionless system in the future while maintaining its key economic attributes; fourth, it establishes strong protective measures in the Libra reserve.
Source: https://zombit.info/libra-white-paper-2/
Celo to Hold Public Auction via Coinlist on May 7th, with Celo Gold Starting at $12
Financial application open-source platform Celo will hold a public sale of its application token, Celo Gold (cGLD), via Coinlist on May 7th. The starting price for this auction is $12, with a minimum price of $1. Additionally, the total supply of cGLD tokens is 1 billion, and based on the minimum price of $1, Celo Gold is estimated to be valued at around $1 billion. Celo completed a $30 million financing round in August last year, with major investors including crypto funds a16z crypto and Polychain, Dragonfly Capital. In addition to Celo Gold and the stablecoin Celo Dollar pegged to the USD, the team has also developed a wallet where users can transfer Celo Dollar to users without the wallet via phone number.
Source: https://www.chainnews.com/news/447749221004.htm
Traditional USD Threatened? China's Four Major State-Owned Banks Testing Wallet Apps, Digital RMB Launch Imminent
According to reports from Chinese media, the Agricultural Bank of China (ABC) is conducting internal testing of the central bank's digital currency, DCEP. Since China revealed plans to launch an official version of its virtual currency in 2019, DCEP is now officially entering the countdown phase before launch. The Digital Currency/Electronic Payment (DCEP) in China has started pilot programs. Screenshots from the test version of the app show that the DCEP wallet will support functions such as digital asset exchange, management, and transaction record inquiry, as well as basic mobile payment functions like scan payment, transfers, payments, phone chip payments, and more.
Source: https://www..io/chinese-state-owned-bank-releases-test-app-for-central-banks-digital-currency/
Other Highlights
- Atomic Loans Developing DeFi on the Bitcoin Network
- Compound Officially Launches Governance Token COMP, Supported by Coinbase Custody
- Binance Launches "Binance Smart Chain" Testnet, Supports Smart Contracts, Ethereum Compatibility
Part Two: Data Indicators
The data for this week is from 04/14 to 04/20, with the data being extracted around 2:00 PM. TVL refers to Total Value Locked, indicating the total value of assets stored on the platform. Data sources include: DeFi Pulse, CoinMarketCap, Maker's official website, Compound's official website, AAVE's official website, etc.
DeFi Lending Platform Scale
DEX Scale
Dai APR
Coin & Token Value
Part Three: Expert Insights
Ryan Sean Adams: Binance Challenging Ethereum - The War Between Crypto Banks and Money Protocols
Binance building its own chain to take on Ethereum Wrote this months ago: “The crypto banks and money protocols fighting for the same treasure. One permissionless the other permissioned. Irreconcilable differences. And they’re primed to fight.” Read: 
