DeFi

Godfather of DeFi Andre Cronje Inspired This Protocol’s Tactics to Thwart Skydiving Attackers – DL News

Published

7 months ago

14 June, 2024

Godfather of DeFi Andre Cronje Inspired This Protocol's Tactics to Thwart Skydiving Attackers – DL News

Tapioca DAO is using call options for its next airdrop.
The idea was first floated by prolific DeFi developer Andre Cronje in 2021.
The hope is that the airdrop will address Sybil attackers and help the protocol remain competitive.

As crypto airdrops become more and more common, the projects behind them have encountered a big problem: Sybil attackers.

These buccaneer DeFi players create multiple wallet addresses to spoof airdrops by pretending to be running legitimate activity, costing crypto projects. millions.

They siphon rewards from legitimate users and compromise the integrity of the projects they target.

Tapioca DAO, a new money market protocol built on LayerZero, claims to have a solution. Instead of giving away free tokens, its airdrop will give users the opportunity to purchase its native TAP token at a discounted price.

“If someone wants Sybil, there is a capital expenditure,” said Matt Marino, co-founder of Tapioca DAO. DL News. “It’s kind of the same result. If you widen 1,000 tokens at a 50% discount, that person ends up with 500 free tokens.

Marino says Tapioca’s approach ensures that even if users attack Sybil, they won’t just extract value: they’ll have to give something back.

Tapioca DAO is building a DeFi money market and stablecoin. It is built on LayerZero, a cross-chain bridge.

This allows Tapioca to connect borrowers and lenders across different blockchains.

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Inspiration from the DeFi godfather

The inspiration for the airdrop, Marino said, came from Andre Cronjethe so-called DeFi godfather behind the Yearn Finance, Keeper Network and Solidly protocols.

“He talked about call options and I was a big fan of Keeper Network,” he said. “I really agreed with the principle of what he was talking about, and we followed it.”

Cronje was the first to introduce the idea of incentivizing using calls, derivative bets that pay off if the price of a token increases, in 2021.

Tapioca’s plan, however, carries risks.

Marino said Tapioca is likely the first protocol to attempt an options airdrop. It is possible that Sybil attackers will find a loophole to exploit the untested mechanism.

This wouldn’t be the first time one of Cronje’s ideas has gone awry. When it launched Solidly in 2022, users I played with the protocol by voting on their own tokenized liquidity pools.

Airdrop options

Tapioca DAO said its airdrop options “will create the most survivable, aligned, and cost-effective airdrop ever conducted on Sybil.”

It is scheduled to launch on June 14 and will offer options to purchase TAP tokens to those who participated in the protocol’s launch auction, Pearl Club ONFT holders, and select community members.

The first round of the airdrop will distribute options with a redemption price 50% lower than the final APR introductory auction price of $2.07 and will expire in a week. Subsequent rounds will offer options with a 25-50% discount.

If the APR price falls below the redemption price of the options, the options become worthless, potentially excluding some users.

Marino said this situation was intentional.

“We created a protection mechanism whereby if there is not enough demand and the token goes down, inflation stops,” he said.

However, Marino added, the protocol was designed to incentivize holding TAP to avoid this problem.

Holders who lock TAP into the protocol will receive the fees it generates. They will also be able to use their locked tokens as collateral to borrow.

“Room supervisors”

Marino criticized the popular airdrop approach, where projects distribute free tokens to users who meet certain criteria.

“You always end up losing a huge amount of value to people who are Sybiling,” he said.

Some projects spent a lot of time time and effort identify and exclude Sybil attackers, with limited success.

Some even put bonuses on them, and promise to give more tokens to users who can identify them.

This incentivizes users to falsely report legitimate users to projects in hopes of obtaining more tokens for themselves.

“They put monitors in the hallways to monitor,” Marino said. “It just doesn’t work.”

Tapioca’s Endgame

Besides thwarting Sybil’s attackers, airdrop options serve another function.

Tapioca will use the money raised from the options airdrop to provide liquidity, a system known as protocol-specific liquidity – or PoL.

Marino said that many DeFi money markets and stablecoins end up being very illiquid.

“The way you earn fees and profit from a CDP stablecoin as a platform is based on leverage. And if you don’t have liquidity, no one can take advantage of it and then you have no fees,” Marino said.

CDP stands for Collateralized Debt Position – in essence, it is creating tokens worth dollars by locking up other tokens with greater value as collateral.

MakerDAO DAI stablecoin uses a CDP model.

The hope is that if Tapioca can generate enough PoL, it will not rely on mercenary liquidity providers and will be able to offer competitive rates.

It is not certain that Tapioca can achieve this.

Other protocols that have attempted to generate PoL, such as Olympus DAO and Tokemak, have struggled to remain relevant.

Tim Craig is a DeFi correspondent at DL News. Do you have any advice? Send him an email to tim@dlnews.com.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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