The Maker community is looking for solutions after an analysis by B.Protocol suggests that it is possible to exploit the liquidation system to create under-collateralized debt. The researchers created small vaults for $128, just above Maker’s “dust” parameter that defines the minimum size for new vaults. As Maker’s oracles updated to new prices that made these vaults eligible for liquidation, B.Protocol found that the debt remained unclaimed for several hours. While the researchers later closed the bad debt loans on their own, the mechanism could be abused to create a Dai position that would never be liquidated. Splitting a $1 …

Hackers were reportedly able to exploit savings pools at Gibraltar-based decentralized finance protocol Akropolis, getting away with more than $2 million in stablecoins. The firm stated on Twitter on Nov. 12 that it had identified a hack “executed across a body of smart contracts in the savings pools.” Akropolis said the areas targeted by the hackers had already been audited twice, and only included “Curve Y and Curve sUSD savings pools.” Ethereum blockchain records show the hackers got away with more than 2,030,850 Dai by exploiting these savings pools. They then moved the funds to a different address. Akropolis has …

Decentralized finance’s explosive third quarter brought significant growth to stablecoins compatible with Ethereum (ETH). According to crypto market data aggregator Messari, the supply of MakerDAO’s Dai stablecoin grew by 623% in Q3 2020, pushing the token’s value above $1 for four consecutive months. Since starting July with a market cap of nearly $130 million, Dai’s supply has expanded to more than $940 million today. Dai is created when Ether holders deposit their ETH into the MakerDAO protocol, allowing them to create the stablecoin and using Ether as collateral. As an ERC-20 token, Dai can then be used on the Ethereum …

The team behind RSK, a smart-contract-enabled sidechain extension for Bitcoin, announced Tuesday that Maker’s Dai stablecoin is now available on the platform. The integration makes it possible to transfer Dai from Ethereum to the RSK sidechain, which makes it available for use in its Bitcoin-backed decentralized finance ecosystem. The solution uses the Ethereum token bridge developed by the RSK Infrastructure Framework, or RIF, team. The bridge locks up these tokens on the Ethereum blockchain and mints an equivalent amount on RSK, ensuring a stable and decentralized peg via smart contracts. The Dai integration has been audited by Trail of Bits …

The DeFi sector is still going strong with the newly launched yield farming platform APY.Finance attracting more than $67 million in locked funds within one hour of launching liquidity mining earlier today. APY.Finance’s mining contracts incentivize users to provide liquidity in the form of the DAI, USDC, and USDT stablecoins, with users rewarded with the platform’s governance token, APY. The first month will see 900,000 APY tokens mined, the official blog post outlined, but “incentivization details” will vary month-to-month. The total amount of APY to be mined will total 31.2 million tokens, or 31.2% of total supply. The APY token …

After multiple rounds of voting and heated discussion, the final vote to compensate losses for Maker (MKR) users that were liquidated “unfairly” during the March crash failed. About 52,500 MKR voted against any compensation, which accounted for 65% of the total votes. This amounts to about 8% of the total MKR supply, which some commentators took as a sign of low turnout. Nevertheless, Maker community member monetsupply, who was part of the working group designing the compensation proposal, told Cointelegraph that this was “fairly high for a poll vote.” He said that polls normally get commitments of less than 40,000 …

The popular yield farming decentralized finance (DeFi) protocol Yearn Finance is progressing with its forthcoming Wrapped Bitcoin (WBTC) Vault. The team has submitted a MakerDAO Improvement Proposal requesting whitelisting for the WBTC Vault to access upcoming oracle pricing from Maker, suggesting its launch may not be too far off. ‘Vaults’ are Yearn Finance’s core product. They use smart contracts to mobilize pooled assets from users to pursue arbitrage and yield farming strategies while sharing fees to mitigate gas costs. As with Yearn’s recently launched Wrapped Ethereum (WETH) Vault, the WBTC Vault will leverage DAI minted against user holdings, which are …

A MakerDAO (MKR) governance proposal enacted on Tuesday set interest rates on most assets, with the notable exclusion of Ether (ETH), back above 0%. According to Daistats, interest rates for the USDC-A, WBTC and other minor vaults are now back to being at 2%, meaning that the protocol is once again collecting revenue for those who borrow DAI against these assets. Lowering interest rates is generally seen as a way of stimulating DAI creation, which is supposed to lower its price to its intended $1 peg. While Cointelegraph recently reported that the price finally stabilized after a long period of …

A new vault launched on Yearn.finance is being credited for finally restoring the peg of Dai (DAI), the algorithmic stablecoin of the MakerDAO (MKR) project. As Cointelegraph previously reported, Maker had struggled with maintaining a strict $1 peg for DAI since the start of the yield farming wars in June. Though it’s had ups and downs, the price of DAI consistently hovered around $1.02 in the past 30 days. As of press time, the price came down to $1. The community is crediting the yearn.finance project, which launched a new yield farming strategy that relies on minting DAI to farm …

A new Compound governance proposal from Gauntlet founder Tarun Chitra would see all future COMP token distributions locked in a vesting schedule. The proposal was submitted on Wednesday and outlines several ways that the vesting could be implemented. One would involve discrete vesting where the tokens could be claimed at periodic intervals, while another proposes “continuous vesting” that frees tokens gradually as they reach maturity. Either solution would be in stark contrast to how the reward system is set up right now, where the vesting time is effectively zero. While COMP is not immediately distributed into user wallets, it can …

Ross Ulbricht, the founder of SilkRoad, has issued a short follow-up to his essay on MakerDAO (MKR) and how it could be redesigned and improved. The follow-up amounts to a small correction to an assumption he made earlier about the Maker system. In his essay, he was puzzled that the DAI Savings Rate, a reward for “staking” the stablecoin, was higher than what DAI minters paid as interest rate. Indeed this is not the case as the savings rate is obtained from stability fee payments. Raising it above that level would eventually bankrupt the protocol. “I had received values for …

Data from blockchain intelligence firm Flipside Crypto show that 50% of DAI, Maker’s decentralized stablecoin, is now on Compound (COMP). While the figure seems a positive factor for COMP’s growth, it shows a concerning trend for DAI. Since June, the amount of DAI on the Compound Decentralized Finance (DeFi) protocol rapidly surged. As of August, nearly $800 million worth of DAI is on Compound. Total value locked at Compound Finance (USD). Source: Flipside Crypto Why it could be a troubling trend for DAI DAI is the most dominant decentralized stablecoin in the cryptocurrency market. Unlike other widely-utilized stablecoins, like Tether …