2 years ago
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Alchemix Reverse-Rug
In a reversal of events, a mistake in the deployment of alchemix’s alETH led to miscalculations about user debt, in the users’ favor.
The miscalculation and deployment errors allowed users to mint alETH (token representing eth deposited in Alchemix) and use or sell it, without actually having the collateral to do so. In other words, users did not lose funds, they actually gained it(if they exploited this issue).
The Alchemix team responded quickly, turning off the mint function for alETH, but the incident has still resulted in a 2,688 ETH shortfall for alETH backing.
The team has written up a post mortem on the issue with a plan to move forward, and has asked the community for support.
Sushiswap
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IRON Bank Run
Iron Finance, a fork of partially-collateralized stablecoin Frax, has suffered a bank run which de-pegged its stablecoin IRON.
Similar to Frax, Iron is backed by a market-set collateral ratio of USDC. The other portion is backed by its governance token TITAN.
Extremely high APR on both IRON/USDC and TITAN pairs led to high demand for IRON and in turn, both organic and automated buying pressure for TITAN as TITAN is market-bought when IRON is minted.
Yesterday, the price of TITAN started dropping precipitously, presumably as large holders started cashing out. While IRON initially held its peg, a flood of redemptions led to TITAN being sold off harder as well as diluted(redeeming IRON results in TITAN being minted in the amount needed to allow IRON+TITAN=1USDC .
Normally this allows for a near-perfect arbitrage which re-pegs IRON, but because TITAN was dropping faster than the 10 minute TWAP used to calculate TITAN redemption rates, the arbitrage loop was broken. This resulted in a “death spiral” as TITAN went to near zero.
Unlike fully algorithmic stablecoins, IRON is still partially collateralized, at ~74.7% as of this writing. Iron says that redemptions will resume at 5pm UTC.
Pendle Live
Pendle, a protocol to enable trading tokenized future yield, is now live. Users can choose to mint Yield Token(YT) to trade yields or mint Ownership Token(OT) to buy underlying assets at a discount.
Unmarshal Multi-chain Explorer
Unmarshal launched a public beta of xscan.io, a multi-chain explorer for Ethereum, Polygon, and BSC.
Instadapp INST
Instadapp introduced its governance token INST.
Eligible users can claim INST and stake into Uni v3 pool to earn rewards, others can take part in the upcoming LM program.
Ribbon LM Soon
Users can start staking on app.ribbon.finance/staking, and the RBN LM program will officially start this Friday.
Follow @todayindefi to keep up with the latest DeFi news on Twitter.
Disclaimer: Projects or tokens mentioned in this newsletter are often experimental or unaudited. Do your own diligence before using or buying anything mentioned.
