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🌊 Lido Floods Layer 2s with Staked ETH After Launching Incentives Program

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News Analysis
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Staked ETH

🌊 Lido Floods Layer 2s with Staked ETH After Launching Incentives Program

Lido Scrambles to Counter Coinbase and Rocket Pool as Staked ETH Market Heats Up

By Aleksandar Gilbert

INTEGRATION Lido is flooding Arbitrum and Optimism, Ethereum’s most popular scaling protocols, with its staked ETH tokens. And it’s set aside half a million dollars in incentives to do so. Less than a week after Lido announced its integration with Arbitrum and Optimism, the Layer 2 blockchains have received a combined $9M in wstETH.


Post-Merge ETH

⛽️ Ether Turns Deflationary as Experimental Project Pushes Up Gas Prices

XEN Accounts For More Than 40% Of Gas Used On Ethereum In The Past Day

By Owen Fernau

SUPPLY Well, that didn’t take long. Less than a month since The Merge, ETH supply has dropped by more than 2,000 digital tokens, according to ultrasound.money


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Crypto Doxing

😡 Mad about the Celsius Customer Dox? Pray Your CeFi App Doesn’t Go Bankrupt

Bankruptcy Court’s Ruling Clashes With Crypto Privacy in Bellwether Case

By Aleksandar Gilbert

INFURIATING At least they didn’t include home addresses. Bankrupt crypto lender Celsius disclosed the names and transaction histories of its customers in a court filing Wednesday, infuriating the privacy-obsessed crypto community, but drawing a shrug from experts who say that kind of disclosure is common in bankruptcy proceedings. 


DAO Strategy

💰MakerDAO To Deploy $500M In Treasuries And Corporate Bonds

Move Comes Despite Founder’s Reservations About Real-World Assets

By Owen Fernau

INVEST The largest DeFi lender will soon invest up to $500M of USDC into U.S. treasuries and corporate bonds. A $1M test transaction has already been initiated with the full amount to follow shortly.


Exploit Bounties

🪲 Hacker Pockets $677,000 and Free Pass to Settle TransitFinance Exploit

Smart Contract Bug Opened Up Swap Aggregator to $29M Hack

By Tarang Khaitan

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NFT Exploits

🦹🏻‍♂️ Seven Bored Apes Worth $700K Stolen

Observers Suspects a Serial Scammer

By Owen Fernau

SCAM Yet another holder of Bored Ape Yacht Club (BAYC) NFTs has fallen prey to a phishing scam. The latest theft resulted in the loss of seven of the NFTs, each worth over $100,000 at current floor prices.


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Anthony Hopkins The Eternal NFT Collection

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DeFi Explainers

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A Step-by-Step Guide to the Ethereum Compatibility Network

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CHALLENGE More than half the traffic in the decentralized finance (DeFi) ecosystem runs is on Ethereum. This includes lending dApps, exchanges, blockchain games, and NFT marketplaces. So, how does a competitive blockchain challenge such a powerful first-mover advantage?



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Has the move to proof of stake made Ethereum more centralized and censorship-prone?

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🧑‍💻 ✍️ Stories in The Defiant are written by Owen Fernau, Aleksandar Gilbert, Samuel Haig, and yyctrader, and edited by Edward Robinson, yyctrader and Camila Russo. Videos were produced by Alp Gasimov. Podcast was led by Camila, edited by Alp.

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😳 SushiSwap’s Grey Hit By Wild Allegations of Impropriety

DEX’s New Head Chef Rejects ‘Untrue’ Accusations of Ripoffs and Bestiality

By Samuel Haig

TURMOIL Less than a week after SushiSwap sought to end a period of turmoil with the election of Jared Grey as head chef, the decentralized exchange was engulfed in controversy yet again as a series of extraordinary allegations were leveled at its new hire.

SCAMS On Oct. 11, a self-styled “ETH and DeFi enthusiast” called YannickCrypto accused Grey of being involved with multiple crypto scams. Then Twitter lit up with bizarre allegations that Grey had engaged in bestiality with a horse.

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In a thread, Grey denied the accusations. “I have always operated with integrity in this space,” he said. “I’ve had business failures, which [crypto Twitter] likes to scrutinize… However, baseless accusations are caustic and wrong.”

Grey did not respond to requests for comment from The Defiant.

Viral Marketing

SushiSwap appeared to make light of the bestiality accustion by posting an emoji of a horse on social media. “This all just viral marketing for the new Sushi stable coin and we fell for it,” tweeted Cobie, a crypto influencer with 742,000 Twitter followers. 

Grey replied to Cobie, stating “It’s true; stable pools are coming this week.” SushiSwap retweeted the post.

Viral or not, this latest episode of finger pointing demonstrates that SushiSwap remains one of the most contentious projects in crypto. And it couldn’t come at a worse time. This year SushiSwap’s TVL has slid 87%, to $495M, compared to a 39% drop at its archrival, Uniswap.

On-Chain Vote

The Sushi community elected Grey to serve as its new head chef on Oct. 3, with the candidate receiving almost 84% of votes cast in an on-chain vote that was months in the making.

Grey won the vote by securing support from a handful of large SUSHI whales, with five wallets accounting for 95% of the votes supporting his hiring. The top wallet that participated in the vote, linked to the $47B wealth manager, Golden Tree, contributed 37% of the votes supporting Grey and almost a third of the total vote. 

From 2018 to January, Grey was the CEO of Bitfineon, a centralized exchange that is now defunct. Grey also led EONS, a “decentralized ecosystem for financial services” from April 2020 to this May, according to Grey’s LinkedIn profile.

Payment Network

Prior to 2020, EONS operated under the name ALQO, and was billed as a payment network built on the proprietary Falqon blockchain.

ALQO has a troubled history. According to blog posts and tweets, Grey’s accuser YannickCrypto was an ALQO community member and said he knows Grey. In the Oct. 11 tweets, YannickCrypto alleged that Grey introduced a “Web Wallet” for ALQO that was used to steal 70% of the total token supply of ALQO users. 

In addition, YannickCrypto said Bitfineon charged crypto founders 1 BTC to list their tokens on the exchange but pocketed the funds without listing the assets. 

False Allegations

YannickCrypto also said that in 2021 Grey “scammed some people” and infringed copyrights through a company called MultiPlex PC. 

Grey summarily rejected all of YannickCrypto’s allegations as false. “Let me be clear: the accusations towards me are 100% untrue,” he tweeted. 

Grey said his business partner stole funds from the ALQO and Bitfineon community while he was raising money from investors to launch the Bitfineon exchange. 

He shared a link to a 2019 Liberio blog post that said user balances had been compromised in its wallet and blamed ALQO’s and Bitfineon’s lead developer, Kevin Collmer, for  “the loss of user funds.”

Collmer, who appears to be off of social media, could not be reached for comment.

For its part, SushiSwap did not make any statements on the allegations.



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