Are Telegram trading bots in trouble?

Week in DeFi: Are Telegram trading bots in trouble?

Omnichain interoperability protocol LayerZero is drawing criticism after releasing a wstETH Omnichain token on multiple chains. Perpetuals’ decentralized exchange (DEX), dYdX, goes live as the Cosmos appchain and the dominant L2, Arbitrum, launches Arbitrum Orbit.

Big week in the world of DeFi! Let’s dive deeper into what happened in DeFi last week.

overview

Total Value Locked (TVL) across all chains rose steadily as crypto markets surged higher amid a declining stock market. Notable outperformers include Bitcoin L2, Stacks, which saw a 74% increase in TVL, and the newly launched zero-knowledge Ethereum virtual machine chain (zkEVM), Scroll, which saw a similar increase.

Source: https://coinmarketcap.com/chain-ranking/

Welcome to Alpha Central

Yusuf covers dark pools and privacy-focused protocols in DeFi such as Tornado Cash, Secret Network, Mina Protocol and more.

TLDR:

• Dark pools are widespread in traditional markets and account for 14% of US trading volume

• Privacy protocols in DeFi can help reduce the price impact of large trades without having to trust an operator

• These protocols enable private transactions and avoid front-running and wallet tracking

Zee Prime Capital discusses wedges for new protocols: targeting a small and specific market to open the doors to larger markets in the future, rather than targeting large markets from the start, as many crypto projects try to do.

Case in point: Uniswap’s wedge “enabled permissionless bootstrapping of liquidity (and trading) for long-tail tokens.” This was something that centralized exchanges couldn’t provide, but the founders needed it.

Blur’s Wedge, on the other hand, is aimed at active traders seeking higher liquidity and lower fees while using a crypto token as an incentive.

Ethereum: Polygon POL upgrade live

Ethereum scaling solution Polygon introduces the deployment of the POL token on the Ethereum mainnet. POL will replace Polygon’s existing token MATIC to power the Polygon ecosystem. The token migration from MATIC to POL has not yet been announced, but is likely to happen in the near future.

The story goes on

Popular Ethereum DEX Sushi Swap releases SushiXSwap V2, its cross-chain DEX product. SushiXSwap V2 uses universal USDC, provides users with increased security and does not require a gas token on the target chain.

The Telegram bot Maestro was exploited via the Maestro router for 280 ETH. The error has now been identified and corrected. The team has also promised to provide a full refund to all affected users of this exploit.

Another popular Telegram trading bot, Unibot, was also exploited. The cause of the exploit lies in a vulnerability in the token approval of Unibot’s new router. The exploit reportedly siphoned off $560,000 and caused the UNIBOT token to plummet by 40%.

More product launches

• Dollar-cost averaging protocol Stackly is launching on the Ethereum mainnet, allowing users to easily automate token purchases on both Ethereum and the Gnosis chain. Stackly is based on the maximum extractable value (MEV) DEX, CoWSwap.

• ETH restaking platform Astrid goes live, allowing users to stake their Liquid Staking Tokens (LSTs) to receive Liquid Restaked Tokens (LRTs). The currently supported deposit tokens are stETH, rETH and cbETH. Unfortunately, the protocol has since been exploited, but the team issued a full refund to affected users over the weekend.

• Stablecoin protocol QiDAO introduces a revamped token, now an Omnichain Fungible Token (OFT) based on LayerZero technology. Their revised tokenomics also reduces emissions and increases synergies with the Balancer ecosystem.

• ETH liquid staking platform Swell Network releases Super swETH, a swETH vault that allows users to earn increased Pearl rewards and earnings from the Swell Network Decentralized Autonomous Organization (DAO).

• Multichain Perpetuals DEX, Contango, launches cPerps on both Ethereum and Polygon. Contango is built on Aave’s liquidity across supported chains and allows users to discover the best rates for their trading needs.

• Popular portfolio tracker service DeBank releases Monitor Bots, customizable bots that allow users to track any wallet address and set alerts based on specific criteria set by users.

• Ethereum liquid stake infrastructure, SSV Network, is launching a 12-month mainnet incentivized program to promote the decentralization of Ethereum through the use of distributed validator technology (DVT).

L2s: LayerZero bypasses Lido’s governance

LayerZero launches Lido’s wstETH as an Omnichain Fungible Token (OFT), enabling use on Binance Smart Chain, Avalanche and Scroll. The move has drawn some criticism as it is perceived as bypassing Lido’s official governance process in the cross-chain deployment of its token.

Arbitrum introduces Arbitrum Orbit, enabling permissionless deployment of custom chains using Arbitrum Orbit technology. Arbitrum Orbit also allows smart contracts to be written in Rust, C or C++ while maintaining compatibility with Ethereum.

More product launches

• No-code rollup deployer Conduit is collaborating with Uniswap to release Uniswap V4 Sandbox, an OP stack rollup that enables the deployment of a custom automated market maker (AMM) by leveraging Uniswap’s existing liquidity pools.

• Astar Network launches its zkEVM chain, zKatana, on testnet. The chain is built on Polygon’s Chain Development Kit (CDK) and has collaborated with various protocols such as LayerZero, Pyth and Gelato in preparation for its upcoming mainnet launch.

• Liquidity gateway Nimbora is partnering with stablecoin protocol Liquity to integrate LUSD interest-free borrowing with the StarkNet zero-knowledge rollup. Please note that this product is not a Liquity product.

• Creator-focused network Frame announces its intention to launch as L2 on the Arbitrum Nitro stack to benefit from Arbitrum Nitro’s low transaction fees, high throughput and security.

• ETH staking solution EtherFi releases native staking on Polygon zkEVM, giving users the ability to stake ETH via Polygon zkEVM on mainnet. Additionally, the tokens will be re-staked on EigenLayer, providing the potential for additional rewards in the future.

• StarkNet-powered DEX, RabbitX, forgoes BookTrader, allowing traders to trade directly from the order book for the fastest trade placement.

• Perpetuals DEX, UniDEX, introduces 12 custom trading indices that allow traders to gain access to specific sectors in the crypto space in a single trade.

Cosmos: DYdX Appchain, now operational

Perpetual’s DEX, dYdX, finally goes live with dYdX Chain, a Cosmos-based appchain, after four successful testnets. Launching as an appchain allowed the team to fully customize the protocol and make the protocol more decentralized.

Another week, another airdrop

Blue-chip asset bridge Altitude DeFi announces a surprise airdrop of one million ALTD tokens to Stargate token holders. Since both protocols are based on LayerZero, the airdrop could indicate possible future collaborations.

Tweet of the week

Fejau welcomes the return of the bull market with open arms and points to the strength of BTC supply.

Keep up with your favorite projects, stay tuned for next week’s issue, and keep supporting your favorite projects, Degens!

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