@letsgetonchain In that case, the Arbitrum confisticated assets should flow fully into compensationg existing arbitrum WETH holders. Crazy that this is the most probable solution for them.
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Dan
152 posts
i think aave's preferred option to isolate losses to l2 rseth is pretty fucked. rly doesnt want you be a an aave l2 user going forward x.com/0xgadget/statu…
gadget@0xgadget
I’m seeing lots of people saying the rsETH “bridge” was drained. THIS IS WRONG rsETH does not use a “bridge”, it is a natively omnichain token (OFT). Kelp and layerzero both make it very very clear that all issued tokens share a unified supply and are pari passu. If kelp grants preferential redemption to L1 holders just because of the vibes, the ensuing shit show will be unbelievable.
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imo the more reasonable way forward is that the 30,766 ETH go into rsETH backing, kelp socializes the remaining loss across L1 and L2 rsETH holders, aave oracle update accordingly and we can move on..
in terms of numbers that would drop unbacked rsETH approx from 112k to 83k thats ~11.5% haircut vs ~15% pre recovery
if my numbers are not wrong that would reduce bad debt on aave from $123m to ~$90m out of which ~$67m would hit aave eth on mainnet
i think its reasonable that umbrella should take the hit here reducing that $67m by $54m
remaining $13m are either absorbed by aweth holders or DAO treasury should probably cover it
Arbitrum@arbitrum
The Arbitrum Security Council has taken emergency action to freeze the 30,766 ETH being held in the address on Arbitrum One that is connected to the KelpDAO exploit. The Security Council acted with input from law enforcement as to the exploiter’s identity, and, at all times, weighed its commitment to the security and integrity of the Arbitrum community without impacting any Arbitrum users or applications. After significant technical diligence and deliberation, the Security Council identified and executed a technical approach to move funds to safety without affecting any other chain state or Arbitrum users. As of April 20 11:26pm ET the funds have been successfully transferred to an intermediary frozen wallet. They are no longer accessible to the address that originally held the funds, and can only be moved by further action by Arbitrum governance, which will be coordinated with relevant parties.
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@griffgreen 100% the right Decision. The real question: where do the 30k ETH go? Best case: coordinated recovery across all chains/protocols so no user takes a haircut. If that fails, these must at minimum cover Arbitrum users drained by this exact address.@griffgreen what's the view of ASC?
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@griffgreen 100% the right Decision. The real question: where do the 30k ETH go? Best case: coordinated recovery across all chains/protocols so no user takes a haircut. If that fails, these must at minimum cover Arbitrum users drained by this exact address.@griffgreen what's the view of ASC?
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I'm a member of the Security Council & I can tell you we did not make this decision lightly, there were countless hours of debates, technical, practical, ethical and political.
But all it takes for evil to triumph is for good men to do nothing, so today, we decided to do something.
Arbitrum@arbitrum
The Arbitrum Security Council has taken emergency action to freeze the 30,766 ETH being held in the address on Arbitrum One that is connected to the KelpDAO exploit. The Security Council acted with input from law enforcement as to the exploiter’s identity, and, at all times, weighed its commitment to the security and integrity of the Arbitrum community without impacting any Arbitrum users or applications. After significant technical diligence and deliberation, the Security Council identified and executed a technical approach to move funds to safety without affecting any other chain state or Arbitrum users. As of April 20 11:26pm ET the funds have been successfully transferred to an intermediary frozen wallet. They are no longer accessible to the address that originally held the funds, and can only be moved by further action by Arbitrum governance, which will be coordinated with relevant parties.
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In scenario 2, the confiscated ~30k ETH on Arbitrum should be used to offset losses specifically for users affected on Arbitrum.
Otherwise, it creates an inconsistency: losses are not socialised across the system, but the recovered assets are. That raises a fair question: why should the benefits of the confiscated funds be shared broadly, while the losses are not?
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JUST IN: Aave outlines two options to allocate losses
#1 - Socialize losses: $123.7m est. bad debt
—Ethereum: 1.54% shortfall
—Mantle: 9.54% shortfall
—Arbitrum: 3.11% shortfall
—Base: 3.00% shortfall
#2 - Isolate losses to L2s: $230m est. bad debt
—Ethereum: no shortfall
—Mantle: 71.45% shortfall
—Arbitrum: 26.67% shortfall
—Base: 23.28% shortfall
—Ink: 18.00% shortfal
The decision depends on whether Kelp will spread the loss evenly across all rsETH or isolate it to L2 rsETH.
Aave@aave
Update on rsETH incident: @LlamaRisk has published a report outlining the rsETH incident, the immediate actions taken, its impact on Aave, and potential paths forward. All service providers have been working to assess the two potential bad debt scenarios on the Aave protocol. Aave DAO service providers are also leading an effort with ecosystem participants to address any bad debt. This effort already has several indicative commitments from various parties and we are grateful for the strong support we have received so far. We will share further updates as we have them. In the meantime, the full report can be read here: governance.aave.com/t/rseth-incide…
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Dan retweetledi
Building MCP servers just got mass simple and i wish i found this earlier..
so i've been wanting to connect claude code to a bunch of random APIs for my projects.
like custom stuff that doesn't have an MCP server already.. but writing MCP servers from scratch is genuinely annoying.
you gotta set up the project, write all the schemas, handle auth, error handling, testing.. it's a whole thing
then i found skills.sh and it literally changed how i build these..
you run one command in your terminal
npx skills add github.com/anthropics/ski… --skill mcp-builder
and now you can just tell claude code something like "build me an MCP server for the notion API" and it actually goes and does everything.
it reads the API docs on its own, sets up the full project structure, writes proper schemas with validation, handles auth and error handling, and even generates test cases to make sure it all works
i used this to build a custom MCP for a project recently and it took me about 15 minutes.
doing this manually would've easily been a full day of work and honestly i probably would've put it off forever
skills.sh is basically like npm but for AI agents. it has 116k stars on github which is crazy. you can browse all the available skills at skills.sh and install anything with a simple npx skills add command.
it works with claude code, cursor, copilot, windsurf.. pretty much every AI coding tool out there
if you're using claude code without custom MCPs you're honestly leaving so much on the table.
and this makes building them stupid easy so there's really no excuse anymore
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@JustDeauIt Thanks for sharing 😊 To be honest, I need to reactivate my Pro membership. Very objective and well-curated content, absolutely worth it.
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Does anyone know an account on here that was publicly and consistently bearish at the top and now thinks we've bottomed?
From what I can tell, the people who are most bullish right now were also bullish at the top.
Michael Nadeau | The DeFi Report@JustDeauIt
1. BTC does not bottom when everyone thinks the bottom is in. Why? Because sentiment suggests the average investor is *already allocated* (liquidity is on the sell side of the equation). Instead, BTC historically bottoms when the market is already sold off, and the average investor thinks we're going lower. Again, because sentiment is telling you that the average investor sold and thinks we're going lower (liquidity is on the buy side of the equation). 2. Spot volumes typically increase *later in bear markets.* --- What I see right now is 1) rising conviction that the bottom is in (signaling that investors are long), 2) very low trading volumes (similar to what we saw before further moves down in '22). --- I'm sharing a full update covering the ongoing bull/bear battle at this stage of the cycle on Wednesday + how I'm playing it. If you'd like to have the latest research hit your inbox when it's published, you can sign up below 👇
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@buccocapital @LynAldenContact The app is called „Snipd“ and does excactly what you are looking for.
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I would pay a lot of money for some AI solution that clips the 10 most interesting minutes from the podcasts I follow and gives me an hour or two of the best content each week
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@grok @SSattar172005 @WatcherGuru @grok ShouldnT that be a free market without protection the old establishment. What are the changes that they are proposing and what is the likely outcome in the end?
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Banks aren't "scared" per se—they're protecting their deposit base. Stablecoin rewards (like yield on USDC/USDT) compete directly with low-yield bank accounts, risking outflows that fund loans and the economy. The OCC's new rule under the GENIUS Act closes loopholes on indirect rewards to prevent that, balancing crypto growth with banking stability.
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JUST IN: 🇺🇸 US federal banking regulator proposes rule to restrict stablecoin rewards.
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@milesdeutscher @grok are those two videos real or fake? Is the timeframe correct?
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Where do you think we are in the crypto market cycle?
Depression? Disbelief?
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@KryptoWolfGER Aus meiner Sicht kommt noch zeitbasierte Kapitulation und weiterer Preisdruck. Institutionelle Adoption dürfte den Abverkauf ggü. früheren Zyklen dämpfen. DCA 65k–35k macht Sinn. Der Sell-off war extrem - wohl durch forced sells im IBIT-Umfeld. Hoffnung auf Stabilisierung 😏
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@KryptoWolfGER WTF 🙏🛝🤯 scheint auch absolut niemand dagegen zu steuern und den Kaufbutton zu drücken! Crazy was hier abgeht!
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@mr_danmeyer Check spam/promotions. Send me a DM if running into issues.
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TDR Pro members receive email alerts when we make changes to our active portfolio.
They received one on 10/10 when we shifted to risk off and an an 80% cash position.
They just received another one as we shift to risk-on.
If you'd like to sign up, see the link below for one month free 👇
RYAN SΞAN ADAMS - rsa.eth 🦄@RyanSAdams
nice calls @JustDeauIt thedefireport.com
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@jvisserlabs @grok please let me know whats your take is on this, explain what he implies and what happended back then afterwards and how it possibly plays out again?
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The two week rate of change of the MS Value factor is the highest since the dot.com bubble. That value bounce lasted for six years as commodities and the China trade dominated. The sector shifts so far this year are the same as the seven years of the value rise back then. Very small door to rotate right now. Concentration can be painful.
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@_Checkmatey_ Appreciate your thoughts. Turning this into action: What’s your strategy right now?
- If fully invested and down / round-tripped gains: hold through the chop?
- For fresh capital: start DCA or stay patient?
- Timeframe for a bottom, and when do you turn optimistic that upside resumes?
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It's a bear market.
We're much closer to the bottom than the top.
It probably takes a while to form the low.
Markets likely want to flush some excess.
Be a patient buyer, not a panic seller.
Don't use leverage.
Use probabilities to your advantage.
newsletter.checkonchain.com/p/leaking-lower
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@grok @cryptorover @grok So why the f*** would he nominate him? Why would such a move make sense other than a trade-off or a clear stance towords trump? How is their ralationsship?
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Trump's nomination of Kevin Warsh as Fed chair, announced Jan 30, appears driven by Warsh's experience and hawkish stance on inflation control, which sources like CNBC and PBS say reassures markets. Warsh advocates shrinking the $7T balance sheet to curb regressive inflation effects, per his recent talks. This could signal fiscal discipline, though it risks clashing with Trump's growth goals—analysts (e.g., Fortune, Atlantic) note potential for tension or adaptation. Markets may be pricing in tightening prematurely.
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MUST WATCH:
The next Fed chair, Kevin Warsh, thinks the Fed's balance sheet is trillions too large.
This is why Bitcoin, Gold, and Silver are dumping.
When the Fed's balance sheet gets larger, more money rotates into hard assets
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@BMNRTracker @grok @grok edit the chart for the high in the next 24 months? How to you see it play out over 3, 6, 9, 12, 18 and 24 and 60 months?
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