jacobc.eth

Past days has been extremely hardcore for our team and DeFi in general. DeFi went trough a substantial stress test and the consequences were felt. It definitely was the hardest couple of weeks that I experienced in my life and during the past decade building in the space. I am still writing this with couple of hours of sleep per day so bear with me. For me personally, the rsETH bridge incident was unfortunate as our team and community has put so much effort into securing the protocol and seeing the exploit happening outside of the protocol smart contracts, and affecting the markets is hard to watch even when the markets had (and still have) full backing like Mainnet Core. That being said, Aave has seen multiple market/credit cycles and always has been able to prove its resiliency. I have more confidence in DeFi today than ever, not because of the industry is stepping up and improving security practices, but because there is a true community behind DeFi that is willing to help and do whatever it takes to ensure our space has future. I want to say that during all this madness there were lot of people that were extremely supportive and proactive to mitigate any issues and contagion. At the first glance, from Aave's perspective we were positive that we would find a resolution and we had overall balance sheet, protocol revenue and external/public support to over come the issue from Aave's perspective but what we understood is that the issue was beyond Aave. It was about restoring the whole state of DeFi, avoid contagion and ensuring that the whole ecosystem overcome this incident not solely Aave. DeFi United started as an initiative from DeFi protocols that were affected but eventually became an industry wide movement to save DeFi and bring protocols together. I am grateful for all the contributions and support that everyone has been providing and can say that this wouldn't be possible without it. I'd hope that DeFi United becomes a permanent movement in some shape or form with the right form factor. DeFi United was executed at insane speed and other constraints but there could be a model that could continuously support the industry from the unexpected. I'd say during the past week lot of people stood up and I really don't have the space to mention everyone (you know who you are) but specifically I want to say that @MikeSilagadze deserves more respect from the space than anyone else atm, he went above and beyond and was willing to sacrifice a lot to solve what actually wasn't something cause by his efforts. Full respect. @LidoFinance team also deserve special credit, this team truly cares about DeFi and was extremely helpful along the way. They deserve full credit. @gdog97_ deserves credit as well, who helped to brainstorm various solutions and also stepping in with Ethena and helping on coordination. @arbitrum community for doing the right thing and rescuing the funds from the bridge contract that was a difficult but the right call. @Mantle_Official @Bybit_Official team for stepping up as well and showing strong support. The team has been supportive and truly cares about making the space safe. Last but not least lot of credit goes to @ethereumJoseph who really stepped in to help DeFi and the ecosystem. Joe cares about Ethereum, he cares about DeFi and understand the importance of DeFi for the future of Ethereum. We have truly good people within our community. These folks are true guardians of our space (among others on my long list) that really want DeFi to win. I feel very optimistic now about our space, it is true that events like these can be a setback but in reality it builds resiliency, which our space stands for, and over time that is hard to beat by legacy systems. The past week we had to operate in multiple different constraints from time, information, resources, governance and other. We had to move as fast as we could as time was against us. It was a large coordination effort that we haven't experienced so far. I'd like to give most of this credit to our team and community especially @Token_Logic and @LlamaRisk who went also above and beyond to find resolutions and coordinate. There has been some banter about right type of market structure for onchain lending between shared or isolated pools but the reality is that when capital moves, it moves at scale and market structures are less of a mitigating factor. These kinds of times require to find solutions fast and reestablish the trust in the markets and the technology, that's whats important. All this being said there are some great learnings from this indecent like from any incident and we as any other team involved will share a post mortem and steps to improve anti-fragility. I might be now less bullish on onchain lending as infrastructure and more leaning towards a model where the market structures need to be backed by strong balance sheets and risk transfers, however this is another discussion for the future as issues can stem outside of the protocol's control. Now as the markets on Ethereum mainnet Core are restoring, our team continues to execute the technical plan to restore rest all the markets. Thank you for everyone who has been supportive and we will keep you up to date as we progress. DeFi United.

🚨 AAVE just presented two potential ways on how to manage the bad debt. Both solutions throw users under the bus with no accountability from AAVE leadership on listing rsETH: 1️⃣ Socialize losses, L1 depositors take the biggest hit, including Umbrella depositors 2️⃣ L2 depositors take the loss, Mantle and Arbitrum are most affected I think the AAVE DAO and service providers have to take some accountability for listing rsETH and allowing it on their platform at the level of hundreds of millions. This has impacted users that never heard of rsETH or never touched it. Why should a user on Linea chain incur losses? Perhaps AAVE can find a solution with affected chains and corresponding parties to minimize the impact on users. I see Arbitrum already froze and took out the hacker funds in a historic decision that will redefine what DeFi actually is. This will reduce the total bad debt. The problem is that most of this fumble is also on AAVE that allowed this high-risk collateral type on their platform. Had they limited it, this would not be an AAVE and DeFi crisis, but just another bridge exploit impacting direct rsETH holders. This will likely drag on for a long time and likely end up in court as nobody wants to pay the bill, since each party has its own merits in the arguments they take. A settlement that favors users would be best. But may come at the expense of AAVE's treasury which still holds $181 million. Will Stani stay greedy or do what's best for his users? Time will tell. Like, share, and follow @duonine

Bring back Single-Collateral DAI

@cv_alphas @HyperPlayGaming yes, you literally don't need to use the dapp interface anymore. It replaces it with a Claude-like chat interface that interfaces directly with the smart contracts. This also protects you in incidents where the dapps are hacked to point at malicious contracts.

@HyperPlayGaming kills dapps?

We're excited to share that we've been building something new. Introducing CoinFello: the first AI agent that completely replaces the need to use dapps with a familiar AI interface. All of crypto in one conversation.

a $20m swap via @1inch routing 100% via the redemption protocol

Every Defi protocol should have: 1. Circuit breakers for deposit and withdrawals, and possibly other internal operations as well 2. Timelocks for any change 3. Security councils that can shut down protocols immediately We don't need insurance, we need to do start doing the ffcking basics correctly. It's too early for this space to drive without any training wheels. I beg you, sacrifice a tiny bit of UX to gain a lot of peace of mind. The worst possible UX is losing your user's money.

@William95649163 @TimothyAlberino Cool story but Jesus Christ is part of the Godhead, not a separate being. Furthermore, Sophia is a name for the pre-incarnate Christ, also not a separate being. This interpretation comes from the early church Fathers who explored these questions extensively and meticulously.

Enoch is conflating stories a bit here. The 200 is different beings than the Elohim. The 200 were a group of angels that ~fell, gone rogue, however you want to think. Sophia had something to do with them. And God created the 300 to bring balance back. Soul of Jesus and Mary M, are part of the 300. Mary (i.e. Maggie, Mari, Magwani, Hathor, etc) was actually #300 and can't get the exact number of Jesus, not sure it matters. However, the Elohim, where flesh and blood aliens. Large and white, almost glowed, Greek god like. Because of their biology where very hot, and liked the mountains. And they "watched" from the mountains, hence the term - "The watchers". They had ships, but only about 200 years ahead of us on a relative scale. Escaped their damaged planet (Reptiles involved in destruction, probably Mars was side effected in same event). Very few woman in the group. They did mate with humans, which made like 30lb babies, and killed many women in child birth or first or second child. Mary soul was actually 1 of the Elohim women, not sure if Jesus was in that one. Just really wild stuff.

When Anna Paulina Luna tells you to “Read Enoch,” she is insinuating that the modern UFO phenomenon is connected to the events that transpired in the world before the Flood of Noah—and she is correct. The Book of Enoch details the descent of 200 “extraterrestrial” beings, called Watchers, who copulated with human women and progenerated a race of giants, the Nephilim. The Watchers and their hybrid offspring dominated the earth for over a thousand years, until a worldwide cataclysm utterly destroyed their empire. My edition of the Book of Enoch explores this incredible narrative and explains the connections between the Watchers, the Nephilim, a technologically advanced antediluvian civilization, and the modern UFO phenomenon. Get it here 👉 amz.cx/3dJu @realannapaulina @EricBurlison @timburchett @joerogan @ShawnRyan762 @glennbeck @michaeljknowles @MattWalshBlog

@saintniko Truly, He is risen!

Χριστὸς ἀνέστη

Christos anesti! Death is defeated. The prisoners are free. Christ is risen, truly He is risen! ☦️

We've been massively re-architecting our CLI facing agent. Agents using the CoinFello Agent Skill can expect to see dramatic improvements over the next couple of weeks. Make sure you keep an eye out and follow us if you don't already.

@0xSantosa @StaniKulechov @binji_x @SuhailKakar Aave works completely different from this centralized garbage 🙃

@StaniKulechov @binji_x @SuhailKakar So AAVE is not DeFi as well?

defi is fucked lol drift just got drained for $200M+ and here's how: - attacker minted 750M fake tokens - made a raydium pool with $500 liquidity, priced at ~$1/token - compromised admin key listed the fake token on drift - disabled all withdrawal guards in one tx - deposited $785M of fake "collateral" and drained every vault in 31 txs over 12 minutes - nobody noticed for an hour - attacker came back 2hrs later to grab a few more million the multisig was 2/5 with a 0-second timelock. $200M+ protected by two signatures and zero delay. and people wonder why nobody takes this industry seriously

Web3 has enough naming services.

@Geiger_Capital @Selkis_2028 What is the best strategy for shorting this?

There it is… "We’re in serious discussions with Iran to end the war" truth social post an hour before markets open on Monday morning. A new weekly tradition.

@CoinFello AI agents are going to eat the dapp layer and create fantastic web3 UX.

CoinFello is live for everyone! CoinFello is an AI agent that helps you research, execute, and automate any onchain action across all EVM chains using plain language. Your keys stay yours the entire time. No waitlist. No invite code. Open to everyone, from today. Here is what that means 👇

We have been cooking.

Lets go! Play pretext breaker 🎮 pretext-breaker.netlify.app

For what its worth, something that doesn't get communicated well is the "aggregator of aggregator" cost savings. Most of the products on this list either hook into a single DEX or a single DEX aggregator. But back in 2020 when we did a study on this at MetaMask, we found that no DEX aggregator gets the best price more than 20% of the time. The MetaMask approach attempts to search every possible what to route the order and potentially will have the best cost savings in many situations, especially when the order is for an exotic token pair. But most people think of this stuff as a fee on a commoditized service, which is pretty misleading.

What's crazy about this is that I literally proposed the .875 fee on a MetaMask call as a joke. We had predicted the average savings by using a MetaMask's aggregator of aggregators to be significant, especially for low liquidity pairs. Around 1%-5% outside of ultra high liquidity pairs. Someone said "we could just set the fee to 1℅ then." I jokingly replied: "no, make it like a supermarket sale and set it to 0.875%." We actually planned back then to quickly iterate on what the fee should be, but it ended up being so successful that no one wanted to change it. I never imagined that fee level would be around 6 years later or that other products would adopt similar fee structures.

Swap fees per wallet: - MetaMask - 0.875% - OpenSea - 0.85% - Phantom - 0.85% (1.5% for gasless mobile swaps on Solana) - Zerion - 0.67% (0% with Premium DNA) - Exodus - 0.5% minimum, actual spread often 2-5% depending on pair - Rabby - 0.25% - Backpack - 0% on Solana swaps and bridges - Ledger Live - 0.5-1%, varies by partner provider - Atomic Wallet - ~0.5-1% - Zengo - ~0.5-1% - Bybit Wallet - 0-0.5% - Binance Web3 Wallet - 0-0.5% - OKX Web3 Wallet - 0-0.5%

@GrapheneOS A sign that GrapheneOS is on the right side 🫡

There are at least a dozen people spending at least several hours attacking GrapheneOS across platforms on a daily basis. It's a very strange situation. How do these people have so much time and dedication to keep making posts across platforms attacking us? It's relentless.