Channel: crypto eli5
sai shutdown
if you still use sai (old dai), it's time to migrate it as sai might be shut down soon with little to no prior announcement. sai will be redeemable for underlying eth forever but the rate will be fixed at shutdown time, so it'll effectively depeg from the dollar at this point.
makerdao faces a serious crisis right now and it simply lack resources to support sai anymore. there are also problems with sai liquidations as they use a fixed 3% disount instead of auctions and sai trades above peg making liquidations unprofitable.
https://migrate.makerdao.com
https://forum.makerdao.com/t/signal-thread-scd-shutdown/1673
if you still use sai (old dai), it's time to migrate it as sai might be shut down soon with little to no prior announcement. sai will be redeemable for underlying eth forever but the rate will be fixed at shutdown time, so it'll effectively depeg from the dollar at this point.
makerdao faces a serious crisis right now and it simply lack resources to support sai anymore. there are also problems with sai liquidations as they use a fixed 3% disount instead of auctions and sai trades above peg making liquidations unprofitable.
https://migrate.makerdao.com
https://forum.makerdao.com/t/signal-thread-scd-shutdown/1673
mkr flop
another design flaw of sai makes it impossible to collect fees on forced shutdown which will cost makerdao about 7700 in unpaid fees. this is unfortunate considering makerdao has already suffered losses in covid crash on march 12th which has put multi-collateral dai in the red zone. due to combination of low auction duration, network congestion and insufficient dai liquidity, many liquidations went awry and received near-zero offers for the entire collateral amount. at least 8.3m of ether were auctioned for about 500 dai.
some of it was covered by system surplus, but it still left a dent in the system debt. it also left a lot of unhappy vault owners which received no collateral back, when a succesful liquidation would leave them with about 21%. as designed, the system will dilute mkr and sell it for dai in debt auctions. there is a total of 5.36m dai debt to be covered.
flop auctions use a fixed 50,000 dai batch and 250 mkr initial lot. since it's a reverse auction, you offer a higher price by bidding for less mkr. if an auction receives no bids in 3 days, it gets restarted with 20% more mkr offered.
a community initiative called @backstopsyndicate allows you to pool dai and acts as a safety net. they will bid at a low price of 100 dai per mkr which can be reached only after four restarts. the goal is to signal strong support and not really to buy into the auctions.
to participate in the auctions you need to run auction-keeper or its dockerized version. the bidding ui will also be up soon at auctions.makerdao.com. the first auction starts march 19th at about 14:30 utc. you can also watch them on this page.
another design flaw of sai makes it impossible to collect fees on forced shutdown which will cost makerdao about 7700 in unpaid fees. this is unfortunate considering makerdao has already suffered losses in covid crash on march 12th which has put multi-collateral dai in the red zone. due to combination of low auction duration, network congestion and insufficient dai liquidity, many liquidations went awry and received near-zero offers for the entire collateral amount. at least 8.3m of ether were auctioned for about 500 dai.
some of it was covered by system surplus, but it still left a dent in the system debt. it also left a lot of unhappy vault owners which received no collateral back, when a succesful liquidation would leave them with about 21%. as designed, the system will dilute mkr and sell it for dai in debt auctions. there is a total of 5.36m dai debt to be covered.
flop auctions use a fixed 50,000 dai batch and 250 mkr initial lot. since it's a reverse auction, you offer a higher price by bidding for less mkr. if an auction receives no bids in 3 days, it gets restarted with 20% more mkr offered.
a community initiative called @backstopsyndicate allows you to pool dai and acts as a safety net. they will bid at a low price of 100 dai per mkr which can be reached only after four restarts. the goal is to signal strong support and not really to buy into the auctions.
to participate in the auctions you need to run auction-keeper or its dockerized version. the bidding ui will also be up soon at auctions.makerdao.com. the first auction starts march 19th at about 14:30 utc. you can also watch them on this page.
kiss first, then heal
eight of makerdao debt auctions were blocked by someone unknowingly (or maliciously) using the auction proceeds to cancel out system debt instead of on-auction debt.
in makerdao liquidations go to the debt queue where debt matures over 6.5 days. it's usually redeemed earlier via collateral auctions or system surplus. if it doesn't happen, debt (
then you can start an auction that turns
of course, it can be fixed rather easily, but the problem of blocking still stands, it will probably require an upgrade to the flopper contract so it can
here is a helpful presentation which explains what happened in much greater detail. don't forget to read the speaker notes.
https://docs.google.com/presentation/d/1nnpPBiOLEWi81q8zrHoIWH4s3iQaKrCSaR68AafzQJo/edit#slide=id.p
eight of makerdao debt auctions were blocked by someone unknowingly (or maliciously) using the auction proceeds to cancel out system debt instead of on-auction debt.
in makerdao liquidations go to the debt queue where debt matures over 6.5 days. it's usually redeemed earlier via collateral auctions or system surplus. if it doesn't happen, debt (
flop) auctions occur. to start a flop auction you need to bring system surplus to zero first by canceling it out with system debt (sin) using heal function.then you can start an auction that turns
sin into ash, on-auction debt. after the first bid, you can use the proceeds to cancel out sin. this is done using kiss function which also removes the appropriate amount of on-auction debt. someone has used heal instead which doesn't remove ash blocking further auctions.of course, it can be fixed rather easily, but the problem of blocking still stands, it will probably require an upgrade to the flopper contract so it can
kiss immediately after receiving the first bid.here is a helpful presentation which explains what happened in much greater detail. don't forget to read the speaker notes.
https://docs.google.com/presentation/d/1nnpPBiOLEWi81q8zrHoIWH4s3iQaKrCSaR68AafzQJo/edit#slide=id.p
balancer
balancer is another take on constant product market maker which expands the design you know from uniswap to n-dimensional invariant surfaces.
the project's code is now open source and features an audit from trail of bits. the contracts have also been deployed to mainnet with a closed beta underway focussed on polishing the ui. balancer's github also features a smart order router which helps with off-chain optimization of order execution.
https://medium.com/balancer-protocol/balancer-contracts-are-open-sourced-33bde904f38f
balancer is another take on constant product market maker which expands the design you know from uniswap to n-dimensional invariant surfaces.
the project's code is now open source and features an audit from trail of bits. the contracts have also been deployed to mainnet with a closed beta underway focussed on polishing the ui. balancer's github also features a smart order router which helps with off-chain optimization of order execution.
https://medium.com/balancer-protocol/balancer-contracts-are-open-sourced-33bde904f38f
gitcoin grants
fund your favorite public good projects with as little as 1 dai and they will receive a much larger matching donation. go do it now.
https://gitcoin.co/grants/
fund your favorite public good projects with as little as 1 dai and they will receive a much larger matching donation. go do it now.
https://gitcoin.co/grants/
covid crash
an in-depth timeline of makerdao's recent crisis.
https://medium.com/dragonfly-research/daos-ex-machina-an-in-depth-timeline-of-makers-recent-crisis-66d2ae39dd65
an in-depth timeline of makerdao's recent crisis.
https://medium.com/dragonfly-research/daos-ex-machina-an-in-depth-timeline-of-makers-recent-crisis-66d2ae39dd65
uniswap v2 has launched
it features erc20/erc20 pairs, time-weighted price oracle, flash swaps and a migration tool. personally i'm not a huge fan of v2 design and i think i'll stay on v1 for the time being.
https://uniswap.org/blog/launch-uniswap-v2/
it features erc20/erc20 pairs, time-weighted price oracle, flash swaps and a migration tool. personally i'm not a huge fan of v2 design and i think i'll stay on v1 for the time being.
https://uniswap.org/blog/launch-uniswap-v2/
tbtc pause post-mortem
https://blog.keep.network/details-of-the-tbtc-deposit-pause-on-may-18-2020-38d7dd555663
https://blog.keep.network/details-of-the-tbtc-deposit-pause-on-may-18-2020-38d7dd555663
eth2 topaz testnet has over 1 million goerli ether staked
come try it out
https://prylabs.net/participate
come try it out
https://prylabs.net/participate
deversifi
another zk-rollup exchange has launched on ethereum mainnet. based on starkware's zk-starks tech, it can handle 9000+ trades per second.
deversifi.com
another zk-rollup exchange has launched on ethereum mainnet. based on starkware's zk-starks tech, it can handle 9000+ trades per second.
deversifi.com
eth2 onyx testnet
if things go well, this is supposed to be the multi-client testnet before mainnet launch. it uses the latest v0.12.1 spec.
https://medium.com/prysmatic-labs/introducing-the-onyx-testnet-6dadbd95d873
if things go well, this is supposed to be the multi-client testnet before mainnet launch. it uses the latest v0.12.1 spec.
https://medium.com/prysmatic-labs/introducing-the-onyx-testnet-6dadbd95d873
psa: bancor vulnerability
if you have used bancor in the last two days, you funds are at risk. you want to revoke token approvals from these contracts or your tokens might be drained. go to approved.zone, search for these addresses and decline the approvals if found:
0x8dFEB86C7C962577deD19AB2050AC78654feA9F7
0x5f58058C0eC971492166763c8C22632B583F667f
0x923cAb01E6a4639664aa64B76396Eec0ea7d3a5f
update: bancor has decided to drain the funds themselves, but the point still stands. anyone can do it now, so better take no chances.
if you have used bancor in the last two days, you funds are at risk. you want to revoke token approvals from these contracts or your tokens might be drained. go to approved.zone, search for these addresses and decline the approvals if found:
0x8dFEB86C7C962577deD19AB2050AC78654feA9F7
0x5f58058C0eC971492166763c8C22632B583F667f
0x923cAb01E6a4639664aa64B76396Eec0ea7d3a5f
update: bancor has decided to drain the funds themselves, but the point still stands. anyone can do it now, so better take no chances.
comparison of ethereum layer 2 scaling solutions
https://medium.com/matter-labs/evaluating-ethereum-l2-scaling-solutions-a-comparison-framework-b6b2f410f955
https://medium.com/matter-labs/evaluating-ethereum-l2-scaling-solutions-a-comparison-framework-b6b2f410f955
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