🌀Tornado Cash Hacker Proposes To Patch Exploit

The Defiant

DeFi Daily

GM Defiers!

Tornado Cash found itself at the center of attention yet again after a hacker exploited a governance proposal, only to later propose a patch to fix the same attack. Meanwhile, the crypto markets are showing signs of resilience, while tokenized versions of U.S. Treasury bonds have gained momentum, crossing a market cap of $200M.

✍️ In today’s newsletter:

  • Hacker wants to patch Tornado Cash bug after stealing $1M
  • Crypto rallies as stocks drop
  • Tokenized Treasury bonds gain traction

🙏Sponsored:

📈 Markets in the last 24 hrs:

BTC
Bitcoin
$26,876
-0.880%
ETH
Ether
$1,873.9
-0.880%
MKR
Maker
$675
-1.17%
SPY
S&P500
$428.03
+1.43%
UNI
Uniswap
$4.977
-0.760%
LDO
Lido DAO
$2.274
+0.00%
AMKT
Alongside Crypto Market Index
$89.79
-1.48%
Sponsored

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DeFi Exploit

Hackers Steal $1M From Tornado Cash, Then Propose to Fix Governance Takeover

TLDR A hacker exploited Tornado Cash, a protocol for private cryptocurrency transactions, to steal around $1M in assets. In an unexpected turn, the hacker has now proposed to patch the very attack they used. The community is set to vote on the proposal, but its execution is not guaranteed. The price of Tornado Cash's native token, TORN, is down over 30% since the attack.

SO WHAT The incident serves as a reminder of the risks and vulnerabilities present in decentralized organizations and highlights the need for thorough examination of on-chain governance proposals.


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Markets

Crypto Rallies As US Debt Ceiling Talks Continue

TLDR Crypto markets started the week positively, with Ether (ETH) rising nearly 3% to $1,860. Render (RNDR) surged 13% amid speculation of Apple's VR headset utilizing its decentralized graphics processing network. Kava, a Layer 1 blockchain, rallied 8%.

Ethereum's staking boom continues, with over 68,000 in the queue for validator onboarding. Memecoin trading remains active, while pizza-themed meme tokens saw multiple rug-pull scams on Bitcoin Pizza Day.

The combined market capitalization of DeFi assets is down for the month but up 37% year-to-date, currently at $46.6B.


DeFi

Tokenized Bonds Surpass $200M In Market Capitalization

TLDR Tokenized versions of publicly traded securities in the United States have surpassed a market capitalization of $200M, driven by rising interest rates and lower yields on stablecoins in DeFi. OUSG, a tokenized version of Blackrock's short-term U.S. treasury bond ETF, leads the market with over 60% market share. While fixed-income offerings gain traction, tokenized equities are yet to see the same level of interest.

SO WHAT The increasing popularity of tokenized bonds highlights the appeal of traditional assets on the blockchain, driven by factors such as rising interest rates and the ability to easily access yield-accruing Treasuries. The success of tokenized securities also brings regulatory compliance requirements, with projects needing to register with the SEC once they reach a certain threshold of assets under management.


🔎 OUR REPORTERS ARE WATCHING


🌍 ELSEWHERE

  • Bitcoin HODLing Has Never Been More Popular (Coindesk)
  • No way to police all cryptocurrency fraud, CFTC commissioner says (Reuters)
  • Elon Musk warns investors not to ‘bet the farm on Dogecoin’ (Fortune)

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