​​The syndrome of Arthur can now also get you on-chain 😥

Yesyes, the BitMex Arthur. Liquidating plebs on low depth is what he does as a job and as a hobby. And now it's available in DeFi! Well, it has always been...

Fulcrum has lost a portion of its ETH today following the attack... or as some speculate, actually just a very smart trade which abused the functionalities of the tools people have actually built. That's the risk you indulge in when all the systems so openly inter-operate. A house of cards, quite literally 🃏 Time and tests will fix it, but be careful for now!

By relying on an on-chain decentralized price oracle without validating the rates returned, DDEX and bZx were susceptible to atomic price manipulation. This would have resulted in the loss of liquid ETH in the ETH/DAI market for DDEX, and loss of all liquid funds in bZx. Fortunately, no funds were actually lost. - was actually said before, but it looks like something went through after all. Here is the article from September 2019: https://samczsun.com/taking-undercollateralized-loans-for-fun-and-for-profit/

Curve said: On a serious note, using Uniswap as a price oracle currently, especially if done in a single transaction rather than time averaged, is very dangerous. And also speculating that maybe it was beneficial for some systems, check this tweet: https://twitter.com/CurveFinance/status/1228663789312184320

Cool people, cool communities, cool tools 🤜

Let's use this moment to not just be sad or warn about risks, but also clap to the builders of the ecosystem who are doing cool stuff. There are so many new things and tools that I actually am not sure I can follow them all at this point. So if I missed any - actually please come educate us in the @lobsters_chat 🦀

1. iEarn Finance 🐾 So many lending platforms and APR generating protocols, how do I choose between them? Our beloved nocoder Andre Cronje built an aggregator. You just connect to that, and the contracts decide and rebalance into different protocols. He is actively adding new stuff, inspiring to see! See iearn.finance

2. Frontier Wallet 🌀 The amazing Palash and Ravindra (ex-InstaDapp) built a very cool and unique feature with their new DeFi wallet TxLink Wallet Composability on Mobile as they called the article. Really improves the UX and lets you more easily surf around web3. Read more: https://bit.ly/38uAmLR

3. Curve Finance ➕ Stablecoin on-chain marketmaker Creating deep on-chain liquidity using advanced bonding curves. it's something so mathematically beautiful, and is built by Michael Egorov, CTO of NuCypher, who many community members adore. What a champ too! See: https://compound.curve.fi/faq.html

Super looking forward to ETHDenver submissions and results! Heard of a project doing an exciting experiment there with the networking layer, xDai and Austin taking wallet experience further, Splunk offering more dev-stats in a cool manner, a few new DeFi tools, and more. Will be sharing that later too. Cheers!