Evening News | BitMEX founder analyzes the reasons behind the 3AC collapse; NFT platform Quixotic suffers a vulnerability loss of approximately $120,000

Organizer: Cookies, Chain Catcher

"What important events have occurred in the past 24 hours?"

1. Optimism's official NFT platform Quixotic suffers a vulnerability resulting in a loss of approximately $120,000, will suspend market functions and fully compensate users

According to information from the SlowMist security team, on July 1, 2022, Quixotic, the largest NFT platform in the Optimism ecosystem, experienced a serious vulnerability. The platform only checked sell orders in the fillSellOrder function of the market contract and did not check the buy orders from buyers. As a result, attackers first created arbitrary NFT contracts, called the fillSellOrder function to generate sell orders, set the buyer parameter to the victim's address, and the paymentERC20 parameter to the token address they intended to steal, allowing them to transfer tokens from users authorized to the market contract for profit. The Quixotic hacker stole approximately 220,000 OP (about $119,000), then exchanged it for USDC and cross-chained it to BNB Chain, after which it was exchanged for BNB and transferred to Tornado Cash.

Quixotic tweeted that the platform's market contract had a vulnerability, allowing hackers to steal users' ERC-20 tokens, but NFT assets remained safe. Quixotic decided to immediately suspend the trading market and will refund all stolen ERC-20 tokens to affected users in the coming days. (Source link)

2. Gitcoin releases a review of the 14th round of donation activities, with 44,000 contributors and $4.9 million in donations both hitting record highs

Gitcoin released a review of the 14th round of donation activities (GR14), with all metrics hitting record highs. This round of donations saw over 44,000 contributors donating to more than 1,250 projects, with a total donation amount of $4.9 million, of which $3.2 million came from the joint matching pool and $1.7 million from the community.

It is reported that the main funding for this round of donations was allocated based on the QF mechanism, with a maximum cap of 2.5% to ensure that matching funds do not become overly concentrated in a few grants. Considering the total funding pool size of $1 million, the maximum match for each grant is $25,000. (Source link)

3. Near announces the launch of stablecoin USN v2.0, which will be pegged 1:1 to stable assets at this stage

Near announced the launch of the stablecoin USN v2.0. The redesigned stablecoin USN has transitioned to a flexible model, supporting major stable assets at a 1:1 ratio and obtaining sustainable local yields from $NEAR staking rewards, with plans to reintroduce non-stablecoin assets as collateral in the future.

USN v2.0 is planned to be executed in two phases: during the bear market phase, $USN will be supported 1:1 with $USDT, and users can only use $USDT to mint and redeem $USN; during the bull market phase, $NEAR will be reintroduced for minting $USN and then staking.

It is understood that due to recent events such as the de-pegging of UST, the Near stablecoin design team, Decentral Bank, has conducted more complex and proactive simulations for USN. Given the uncertainty of the bear market and the selling pressure caused by tightening macro conditions, v1.0 may pose the risk of insufficient dollar collateral due to continuous fluctuations in the dollar price of NEAR. Therefore, the team redesigned $USN to adapt as much as possible to the harshest market conditions. (Source link)

4. Sources say BlockFi has also received an offer from crypto lending platform Ledn

According to sources, BlockFi, which is negotiating acquisition prices with FTX, has also received an offer from crypto lending platform Ledn. Unlike FTX's bid, Ledn's proposal involves new funding rather than a full acquisition, and a bid has been submitted. Sources indicate that Ledn will lead a financing round of up to $400 million and provide $50 million in equity funding, which will give Ledn a significant stake in the company, with other investors possibly including ParaFi Capital.

Spokespersons for BlockFi and ParaFi, Ledn's investor, declined to comment. Ledn CEO Adam Reeds stated in a statement provided by Ledn when asked to comment on the potential BlockFi deal, "Given its operational strength, Ledn is currently evaluating several opportunities to expand Ledn's leadership in digital asset lending and other areas. At this time, we cannot share any additional details."

Earlier reports indicated that in December last year, Ledn completed a $70 million Series B financing at a valuation of $540 million, led by 10T Holdings. (Bloomberg)

5. Hundreds of bored ape NFT holders sign contracts with Boredjobs to rent out their NFTs to brands

Hundreds of BAYC NFT holders have signed contracts on a new NFT licensing marketplace "Boredjobs," allowing them to rent their BAYC IP to brands. The marketplace was launched by blockchain accelerator Mouse Belt Labs. (Cointelegraph)

6. Crypto venture capital firm OP Crypto launches a $100 million fund to support early-stage crypto VCs

Crypto venture capital firm OP Crypto announced it is raising $100 million for its new "Fund of Funds," which will deploy capital into emerging VCs focused on early-stage crypto investments.

Currently, the fund has secured $50 million in commitments from traditional and crypto-focused LPs, including LedgerPrime and FJ Labs, with a target and hard cap of $100 million. (Techcrunch)

7. Crypto app store Magic Square completes $3 million seed round financing, led by Binance Labs and Republic

Multi-chain crypto app store Magic Square has completed a $3 million seed round financing, led by Binance Labs and Republic, with participation from KuCoin Labs, GSR, IQ Protocol, Gravity Ventures, Alpha Grep, and other angel investors.

It is reported that Magic Square is a Web3 solution that makes it easier for everyone to use cryptocurrencies. Users can discover and experience various dapps, CeFi and DeFi, NFTs, games, and more within Magic Square. The public beta will soon be opened to 50,000 pre-registered users. (Source link)

"What are some great articles worth reading in the past 24 hours?"

1. "BitMEX founder Arthur Hayes' long article: The Three Arrows Capital I Know"

This current bear market is the third bear market I have experienced. Although it sometimes feels like a replay, each time brings new insights. In this article, Arthur will use the legendary story of Three Arrows Capital (3AC) as a perspective, through which we can better understand the real insights we should gain from the current bear market. Arthur intends to leverage his understanding of cryptocurrency, financial services, and common sense, starting from the implosion of TerraUSD and Luna, to identify the reasons behind 3AC's collapse.

2. "In-depth analysis of StarkWare: The best team for Ethereum scaling, is $8 billion overvalued?"

On June 22, dYdX, which accounts for 90% of StarkWare's revenue, announced its departure from rollups to migrate to the Cosmos ecosystem to develop an independent application chain. dYdX founder Antonio Juliano has publicly expressed that people are currently overly optimistic about rollups. In the foreseeable future, the Layer 2 ecosystem will experience a "public chain war" similar to the last cycle, with multiple technical solutions and project ecosystems occupying a certain market share. This article will analyze StarkWare's super scalability capabilities from various data points to explain why StarkWare can bring us more possibilities.

3. "Opinion: Practical tokens from real companies will drive the next big explosion in Web3"

Anyone can create a token to represent anything of value and trade it with other assets on an open network based on common standards, which was unimaginable before the emergence of public chains. Tokenization has also allowed many Web 3 "products" to gain traction in the short term. So how can traditional enterprises benefit from practical tokens? This article introduces three methods.

4. "Chainalysis: DAOs are actually not that decentralized"

Decentralized Autonomous Organizations (DAOs) are the primary organizational operating model in the Web3 era. DAOs, based on internet and blockchain technology, provide a unique democratic management structure for businesses, projects, and communities, where any member can participate in governance by purchasing governance tokens and voting on decisions. Although this process is considered a form of decentralization, this article will use data to illustrate the highly concentrated ownership of DAOs.