1 year ago
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Regulators person ever been playing catchup erstwhile it comes to crypto, and aft a drawstring of (coordinated) regulatory actions against a wide swath of crypto actors, it seems that the US Treasury is present mounting its sights connected “DeFi”. The tweet from crypto Twitter maestro, Neeraj sums up a piece written by his workfellow Peter Van Valkenburgh. We’ll defer the law questions to CoinCenter, but it is wide from the Treasury’s appraisal that it is misconstruing what DeFi really is vs. those that purportedly usage it arsenic a selling tool.
Regulators people entities that service arsenic intermediaries to fiscal activity. It’s casual to people Coinbase oregon Kraken due to the fact that it’s a registered institution successful the US. But what astir Uniswap? Regardless of whether regulators legally can or should people it, the elemental information is they can’t. Even if they enactment Hayden successful jailhouse and got each UNI token holders to spell along, they simply can’t alteration the immutable astute declaration connected Ethereum.
This is not to accidental they won’t try! For DeFi protocols that trust importantly connected governance (all the lending protocols), they tin people the token holders themselves and could muster done regularisation by commandeering capable governance power.
There is besides the precise distant anticipation that Uniswap could get the Tornado Cash treatment. Tornado Cash is besides a acceptable of immutable astute declaration connected Ethereum that regulators were incapable to instrumentality down directly, but they achieved the aforesaid extremity by forcing RPC providers and validators to garbage to broadcast oregon corroborate blocks that person transactions that interact with the Tornado Cash astute contracts.
But Tornado Cash reportedly facilitated payments to North Korea. What has Uniswap done?
A illustration that attempts to breakdown however a malicious histrion stole $20m from the astir profitable MEV bots done an exploit of the Ultra Sound Money Relay due to the fact that of a vulnerability successful mev-boost-relay, the Flashbots-built lawsuit MEV searchers and relayers. Bert Miller of Flashbots has a full post-mortem and step-by-step relationship of however the exploit ocurred. In short, the attacker exploited mev-boost’s perpetrate and uncover strategy by convincing the relay to uncover the contents of a artifact because, the relay lone requires a signed artifact header but does not cheque if the artifact is invalid. Typically, since the artifact is invalid it would ne'er get confirmed by the beacon chain.
But successful this instance, the attacker looked astatine the contents of the artifact being projected and past utilized this accusation to suggest their ain artifact wherever it exploited the MEV bots that had submitted transactions successful the archetypal bundle.
This was a daze to the MEV community, which typically does the exploiting. MEV godfather (and Flashbots cofounder) Phil Daian said the exploit “demonstrates the existent powerfulness of having in-protocol [Proposal Builder Separation] + [Single Slot Finality] 1 day, portion besides showing that there's immoderate enactment to bash to get determination :)”
OtterSec has a large Twitter thread, arsenic does MEV OG - and mev-boost skeptic - Pmcgoohan.
Euler exploiter returns $177m successful stolen funds Link
Sushi Head Chef releases connection connected SEC subpoena Link
DeFi Saver launches DCA and bounds orders connected Ethereum Link
CoW Swap launches RPC endpoint to support against MEV Link
OpenEden launches regulated on-chain vault managing US Treasuries Link
GFX Labs launches Google Sheets add-on to query on-chain information Link
Q1 2023 marketplace wrapper [Kyle Waters & Matías Andrade/Coin Metrics]
Etherscan: The Master of Block Explorers [Marco Manoppo/Pensive Pragmatism]
On Blockchain Valuations [Lewis Harland/Decentral Park Research]
How to place MEV transactions done on-chain information [EigenPhi]
The zkEVM contention is present [Tom Wan/21Shares]
How Pancake Swap v3 differs from Uniswap v3 [Ignas/DeFi Research]
That’s it! Feedback appreciated. Just deed reply. Written successful Texas, but my bosom is successful Nashville with the Tennessee Three.
Dose of DeFi is written by Chris Powers, with assistance from Denis Suslov and Financial Content Lab. All contented is for informational purposes and is not intended arsenic concern advice.
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