Category Archives: Ethereum
Hedgey Finance hacked for $44.7m on Arbitrum, Ethereum – crypto.news
On-chain token infrastructure provider Hedgey Finance suffered two exploits as attackers leveraged a bug in its token claims contract.
According to alerts from security startup Cyvers, Hedgey Finance was hacked on April 19 across the Ethereum (ETH) and Arbitrutm (ARB) blockchains. Cyvers reported that the first attack was deployed on ETHs chain, and hackers stole around $1.9 million in crypto.
On-chain analytics showed that the attackers address was funded from web3 crypto exchange ChangeNOW, while stolen funds were swapped into Makers stablecoin DAI after the exploit.
Hedgey Finance issued a notice confirming the incident and said an investigation was ongoing. Users were advised to revoke token claim permission until further notice.
We are actively working with our auditors and team to understand the attack and stop any ongoing attacks. We will share more information as we learn more.
The protocol allows anyone to create an options market for digital assets, enabling users to buy and sell calls and puts on cryptocurrencies issued on EVM-compatible chains. No listing requirement exists, and users can immediately engage in peer-to-peer ERC20 options trading.
Shortly after the first alert, Cyvers issued a follow-up notice pointing to a second attack. This time, hackers siphoned $42.8 million and transferred some of the proceeds to Bybit. The attackers leveraged the same Hedgey Finance vulnerability on both Ethereum and Abritrum.
https://twitter.com/CyversAlerts/status/1781283959403372911
Hedgey Finances exploit echoes security veterans sentiments that protocols must dedicate additional resources and expertise toward safeguarding defi platforms. As crypto continues to capture mainstream attention, on-chain security will likely remain a front-boiler topic for industry stalwarts and newcomers. However, statistics show that hacks may be declining.
Last month, Peckshield noted that crypto exploits decreased by 50%, resulting in smaller investor losses. White hat experts have also provided a help desk to report hacks in real-time and distribute information exploit strategies.
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Hedgey Finance hacked for $44.7m on Arbitrum, Ethereum - crypto.news
What is EigenLayer? Ethereum’s restaking protocol, explained – Cointelegraph
EigenLayer, explained
EigenLayer aims to eliminate a critical barrier many new DApps face by providing developers with an established security framework.
Ethereum has come a long way since its launch in 2015. It has held its position as the most influential blockchain, successfully transitioned from proof-of-work (PoW) to proof-of-stake (PoS), and is the foundation for many innovative crypto projects.
One such project is EigenLayer, a decentralized Ethereum staking protocol that provides developers with an established security pool. This EigenLayer explanation details staking and other vital parts of the Ethereum staking protocol.
The EigenLayer protocol is an Ethereum-based project aiming to improve the networks PoS consensus through a process called Ethereum restaking. The EigenLayer team claims to solve many existing Ethereum security inefficiencies, such as requiring every protocol to manage its own security and scalability processes.
However, before discussing the EigenLayer restaking process, defining the traditional Ethereum staking process is essential.
Staking is one of cryptos most popular features, providing traders with a reliable passive income stream.
Staking involves locking ones cryptocurrency in a staking pool, exchange or smart contract. A user earns interest on their staked assets, and in turn, the network utilizes these assets to cultivate network security. The more funds a user stakes, the more passive income they make.
High-value stakeholders often become validators who participate in transaction validation and vote on upcoming or existing proposals to improve the network. The idea is that stakers are more invested in protecting the blockchain network and less likely to become bad actors. Staking incentivizes good behavior as well. Validator rewards on Ethereum are slashed if a validator fails to participate in the networks best interest.
Decentralized staking is seen as the more accessible form of transaction validation when compared to PoW. PoW has miners racing to be the first block validator to earn a reward. This process has miners spending thousands on computer equipment to increase their hash rates, meaning those who spend the most earn the most. As these users continue to amass tokens, it becomes even more difficult for new miners to get involved.
Staking on Ethereum is similar to holding a savings account in a traditional bank and requires much less effort from the user. Thanks to the advent of staking pools, even users without much money to spare can begin their staking journey.
Restaking is EigenLayers take on traditional staking. It provides new ways for users to generate passive income while increasing network security.
Restaking, in the case of EigenLayer, is the act of taking staked Ethereum and repurposing it to increase security on other protocols essentially creating a pool of restaked assets from which other decentralized applications (DApps) can pull. Users can opt-in to EigenLayers restaking smart contract through their already staked Ether (ETH) or through a liquid staking token (LST).
When a user stakes funds on an Ethereum protocol, most projects offer liquid staking tokens to represent those staked assets a sort of receipt. These tokens allow one to keep using their funds in other ways, such as restaking them through EigenLayer via a process called LST restaking without unstaking their original assets.
Alternatively, users can allow EigenLayers smart contracts to work with their already-staked ETH. Restaking with already-staked ETH is called native restaking. If a user participates in native restaking, the network will add those assets to the protocols security pool. How safe is EigenLayer? Its about as secure as the size of its security pool.
Applications built on EigenLayer are called actively validated services (AVSs) and can be anything from a bridge to a DApp to an oracle. Developing on EigenLayer is cheaper and more efficient than developing on a separate protocol, as EigenLayer has an established trust network in place through restakers. Developing elsewhere requires building a trust network from scratch.
That said, AVSs arent randomly harnessing services from EigenLayer. Instead, theres an intermediary called a node operator, a volunteer opting to help manage the network. Much like an Ethereum validator, an operator can be a single user or an organization.
Operators can build their own AVSs or provide services to other existing AVSs while receiving rewards in return. However, operators are also subject to an AVSs slashing requirements should they fail to perform their duties.
Moreover, operators can be restakers, or restakers can choose to delegate their restaked assets to an operator. Either way, restakers have complete control over which services their assets go toward. As a result, EigenLayer creates a sort of free-market governance system. Developers build on EigenLayer to harness its established security, while operators and restakers earn rewards for managing and providing said security.
EigenLayer streamlines asset management through its EigenPod solution.
Users must connect their wallet to the EigenLayer application and select the token they want to restake. First-time restakers must approve the process before depositing funds into EigenLayers restaking contract.
A restaker manages their restaked assets through an EigenPod, a smart contract created during the restakers initial restaking process. An EigenPod is essentially a hub for the restaker to manage restaking processes, withdrawals and more. There can only be one EigenPod per Ethereum wallet address.
Restakers can visualize their network contributions through EigenLayers restaked points. Users earn restaked points every time a block is validated from their restaking date onward. EigenLayer calculates a users restaked points through a proprietary formula that factors the amount of restaked assets and the time theyve been locked in. The formula views native restaked ETH and restaked LST equally.
Users can withdraw their staking rewards on EigenLayer through a partial or full withdrawal process. Restakers who want to withdraw their earned rewards but continue providing services go through a partial withdrawal process. Partial withdrawals require on-chain proofs, and their gas fees can be expensive. Restakers can request one partial withdrawal every four to five days, and withdrawn funds must go through an additional escrow period before appearing in the restakers wallet.
Full withdrawals are for restakers who no longer want to provide their services. Otherwise, the process is similar to a partial withdrawal, requiring on-chain proofs and an escrow period for withdrawn funds. If a restaker accidentally initiates a full withdrawal, they can redelegate their assets via EigenPods redeposit button. Restakers can initiate either withdrawal process through their EigenPods Unstake section.
EigenLayer features innovative solutions, though this Ethereum network upgrade also introduces its own problems.
EigenLayer hopes to innovate on Ethereums tried-and-true proof-of-stake feature. In some ways, it is doing just that. However, its innovations arent perfect and can lead to new problems.
Since restakers can use their staked assets in additional ways, they have the potential to earn higher rewards than traditional staking methods.
EigenLayers security pool eliminates a key barrier many new projects struggle to overcome. Now, developers can focus on providing valuable services without worrying about establishing trust.
By removing one of the most significant barriers that newer projects face, EigenLayer could lead to genuinely innovative layer-2 projects.
While EigenLayer benefits new DApps by providing them with established security, restaking to participate in the network may overwhelm some users. Many crypto exchanges offer staking as a built-in service, simplifying node setup and maintenance for users on the network. That accessibility comes at the cost of technical know-how. If less technical users are already comfortable with the staking process, they will unlikely be interested in restaking.
EigenLayer AVSs have slashing rules that are different from traditional staking. Since restakers hold assets in traditional staking and restaking avenues, theyre doubling their slashing risk should they fail to uphold their duties.
Not only this, but restakers are doubling their exposure to security risks. Stakers already trust Ethereums smart contract code when they stake assets, and restaking requires trust in EigenLayers development prowess. This isnt to mention the quality of EigenLayer AVSs.
Fortunately, both Ethereum and EigenLayers code is entirely open-source. Knowledgeable developers can assess this code before risking their assets.
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What is EigenLayer? Ethereum's restaking protocol, explained - Cointelegraph
Ethereum Liquid Restaking Drives DeFi TVL to $100B in Q1 2024 – Blockchain.News
When compared to the previous quarter, the total value locked (TVL) in decentralised finance (DeFi) approximately doubled during the first quarter of 2024, indicating that DeFi has witnessed tremendous growth from the previous quarter. It is possible to ascribe, at least in part, this spike to Ethereum's liquid restaking activities, which have been the driving force behind the expansion of DeFi TVL prices. Protocols such as Lido and EigenLayer have been essential in this growth, since they have contributed to the widespread adoption of liquid staking and restaking.
Recent study indicates that DeFi TVL experienced a significant increase from a low of $36 billion in the fourth quarter of 2023 to a high of approximately $97 billion in the first quarter of 2024. This is an increase of 81% and marks a high point for DeFi TVL that has been reached in the last two years. There was a modest rise in the TVL data that Messari gave, and he said that the amount of DeFi collateral climbed by 65.6% from the previous quarter to reach $101 billion. A number of factors, including the rise in the values of underlying assets and the implementation of liquid restaking, have contributed to the expansion of TVL.
Both asset price appreciation and liquid restaking were the primary factors that contributed to the increase of Ethereum's total value of assets (TVL), which was roughly 71% higher than before. Lido and EigenLayer are two examples of protocols that have played a significant role in the revival of DeFi TVL since its inception. On March 13, liquid staking TVL achieved an all-time high of $63 billion. This result was mostly driven by the Ethereum liquid staking protocol Lido, which now controls a market share of 62% of the liquid staking ecosystem. In addition, during the first three months of 2024, the liquidity restaking protocol known as EigenLayer seen a significant increase in both its popularity and its utilisation. The total value of EigenLayer's TVL reached $12 billion at the conclusion of the quarter, representing a stunning 990% rise. EigenLayer makes it possible to stake Ethereum several times, which results in increased returns.
In addition to liquid restaking activities, user activity also played a big influence in the expansion of DeFi TVL. This growth was not just contributed by liquid restaking initiatives. In the most recent quarter, QuickNode recorded a significant increase in user activity of 29.1% compared to the previous quarter, which has spurred expectations of a second "DeFi Summer". Despite the attempts of the SEC to regulate the decentralised finance area, there are indications that expansion and a paradigm change are on the horizon.
However, the current retreat in the cryptocurrency market has resulted in a decrease in the value of DeFi TVL that has been seen. As this article is being written, the value of DeFi TVL has dropped by 11%, reaching $86.6 billion. The entire value of assets that are locked in DeFi protocols has been negatively impacted as a consequence of the larger market slump, which has cause this reduction.
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Ethereum Liquid Restaking Drives DeFi TVL to $100B in Q1 2024 - Blockchain.News
Will Ethereum-Based Tokens Rebound As Top Altcoins Stumble Again? – Coinpedia Fintech News
The cryptocurrency industry continues to record bearish sentiment as top altcoins continue struggling to hold prices above their crucial support levels amid the ongoing market correction. Further, the leader of altcoins, ETH price, hovers close to the $3K mark, indicating a weak price action.
Following this, the newly launched altcoins on the Ethereum blockchain have displayed a mixed sentiment by recording significant price volatility in their respective portfolios. Is this the right time to invest in these low-cap altcoins to maximize your profits post-Bitcoin Halving?
Launched with a price tag of $0.10 on 18th January 2024, the Ondo token displayed a massive surge of over 500% within the first two months, from $0.10 to $0.60. Following this, the volatility in the market increased, resulting in the Ondo token displaying a neutral trend for a while.
The ONDO token has an all-time high (ATH) of $1.05 and currently trades at a discount of approximately 26% since its high. Despite the ongoing market correction, the Ondo price has recorded a correction of less than 5% over the past week and positively it has added over 47% within the past 30 days.
The Moving Average Convergence Divergence (MACD) displays a constant red histogram in the 1D time frame, indicating a weak positive sentiment in the crypto space. Moreover, the averages show a high possibility of a bullish convergence, suggesting uncertainty in the Ondo token price action for this week.
However, if the bulls push the price above the resistance level of $0.80925, the bulls will regain momentum and prepare to test its upper resistance level of $1 this month. Conversely, bearish price action may pull the price toward its low of $0.61 in the coming time.
Also Check Out : Santiment Reveals Top Altcoins Likely to Rebound First Amid Market-Wide Correction
The Omni Network token officially made its first appearance in the cryptocurrency industry on 17th April. Following this, the OMNI token gained significant attention from the market, resulting in the Ethereum-based token recording a high of $54.24 within the first few hours of its launch.
However, the bulls lost momentum at that point, after which the price recorded a correction of approximately 54% in valuation. Since then, the price has been trading in a closed range between $23.10 and $33.
The technical indicator, MACD, shows a rising green histogram in the 15m time frame, indicating a bullish influence for the altcoin in the market. Furthermore, the averages display a significant rise, suggesting a positive outlook for the OMNI price this week.
Read Also : Top Altcoins To Buy This Dip For 100x Profits
If the market continues to gain momentum, the OMNI price will prepare to test its resistance level of $33 in the coming time. Negatively, a bearish reversal may result in the price testing its new low of $11.55.
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Will Ethereum-Based Tokens Rebound As Top Altcoins Stumble Again? - Coinpedia Fintech News
Bitcoin Price Update: BTC Halving Changes Altcoins Outlook, Ethereum, Solana On The Move – CoinGape
Bitcoin Halving Imminent, Whats Next for Crypto?
As we approach the Bitcoin Halving, excitement is palpable throughout the cryptocurrency landscape, with key digital currencies witnessing notable price increases. This event, which occurs roughly every four years, plays
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Bitcoin Price Update: BTC Halving Changes Altcoins Outlook, Ethereum, Solana On The Move - CoinGape
Bitcoin Transaction Fees Overtake Ethereum as Halving Anticipation Grows – CryptoPotato
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Bitcoin Transaction Fees Overtake Ethereum as Halving Anticipation Grows - CryptoPotato
Bitcoin fees top Ethereum for 3 days in a row as halving approaches – Cointelegraph
Fees on Bitcoin have surpassed Ethereum for three consecutive days as miners and traders prepare for the upcoming Bitcoin halving and, to a lesser extent, the introduction of Runes on Bitcoin.
Bitcoin(BTC)miners cashed in $7.47 million in fees on April 17 about $160,000 more than the $7.31 million paid to Ethereum stakers, according to Crypto Fees.
Bitcoin miners also raked in $9.98 million and $5.91 million across April 15 and 16 beating out Ethereum stakers by $3.5 million and 1.1 million on those respective days.
Ethereum, however, maintains a narrow lead on a seven-day average fee basis at $8.55 million compared with Bitcoins $7.57 million.
Bitcoin transaction fees are determined by the size or data volume of the transaction and blockspace demand at the time of the transaction request.
The uptick in Bitcoin fees comes at a crucial time for Bitcoin miners, as April 20s Bitcoin halving event will result in the mining subsidy being sliced from 6.25 BTC ($398,000) to 3.125 BTC ($199,000).
Currently, about 900 BTC is mined per day, which equates to about $57.2 million at current prices.
Using April 17s $7.47 million fee count, this means transaction fees accounted for 11.5% of the Bitcoin mining industrys total block rewards.
However, the share of block rewards from transaction fees will increase considerably after the halving event, as approximately 450 BTC will be mined then.
Miners will, therefore, rely more on higher fees and a continued increase in Bitcoins price to make up for the revenue fall that it will experience at least in the short term from the halving.
Meanwhile, the introduction of NFT-like Ordinals inscriptions in January 2023 has helped Bitcoin miners chalk up more revenue from transaction fees and a new revenue stream will become available when Runes, a new Bitcoin token standard, is released when the halving occurs at block 840,000.
Related: China has a Trojan Horse in US Bitcoin mining infrastructure
Runes will compete with Ordinals by aiming to make it easier to create fungible tokens on Bitcoin for memecoin enthusiasts and other community-driven audiences.
Its creator, Casey Rodarmor who also invented Ordinals said Runes are fully UTXO-based and, therefore, should not spam Bitcoin to the same extent that Ordinals has.
The recent uptick in Bitcoin fees may have been partially driven by a decline in BRC-20 token prices in recent days as some trader attention shifts to Runes.
Ordinals (ORDI) and Sats (SATS), the two largest BRC-20s by market capitalization, have seen falls of 38% and 43%, respectively, over the last week, according to CoinMarketCap.
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Bitcoin fees top Ethereum for 3 days in a row as halving approaches - Cointelegraph