Yesterday in Crypto - Issue #15

Read time: ~9 minutes

Here’s what you missed yesterday, 8/3/23.

CertiK, a cybersecurity firm, recently discovered a significant vulnerability in the WorldCoin protocol.

Unfamiliar with WorldCoin? You can read our thoughts on their launch by clicking HERE.

This flaw could have allowed an attacker to bypass the verification process and become an Orb operator without meeting the necessary requirements such as being a legitimate business, undergoing proper ID verification, or passing a vetting interview. This could have potentially allowed hackers to compromise user data.

Upon discovering the issue, CertiK reported it to WorldCoin through a standard whitehat (good-guy hacker) disclosure procedure. The WorldCoin team confirmed the vulnerability and promptly issued a fix, which CertiK verified and confirmed to have mitigated the threat.

Regardless of this fix, the project has sparked several concerns regarding data privacy and security. Critics argue that WorldCoin might be gathering an excessive amount of personal data, which could potentially be misused for malicious purposes. There are also concerns about the security of the iris scans, as backdoors could be installed into the Orb devices, allowing malicious manufacturers to create multiple fake human identities.

Despite these concerns, WorldCoin has asserted its commitment to safeguarding user privacy and states that it is fully compliant with all laws and regulations governing biometric data collection and data transfer.

To reiterate, I’m steering clear of this one. No $WLD, and no eyeball scanning for me.

SPOILER ALERT - This actually happened early this morning, 8/4/23.

Trader Joe, a popular decentralized exchange (DEX) that was originally built on the Avalanche blockchain, has now expanded its operations to the Ethereum network. This move was driven by the opportunity to tap into the stablecoin markets on Ethereum, especially in the wake of recent disruptions in the market.

Trader Joe's decision to launch on Ethereum was accelerated by recent issues with Curve, another well-known stablecoin DEX, which suffered a significant exploit. This led to a shift in liquidity providers moving to other DEXs, creating an opportunity for Trader Joe to step in and capture some of that market.

Want to learn more about the Curve hack? Click HERE

Initially, Trader Joe will only offer stablecoin pools on Ethereum, specifically USDC/USDT and USDC/DAI pairs. This is because managing positions in a stablecoin market is relatively simple, as the price of stablecoins like USDC and USDT doesn't vary much. This allows users to deploy their assets within a certain range and earn fees from within that range.

Trader Joe's unique selling point is its dynamic fee components. Unlike Uniswap v3, which offers three fixed fee tiers, Trader Joe has a base fixed fee and a variable component that depends on the volatility within the past few seconds to minutes. This makes it a more flexible option for liquidity providers. The launch of Trader Joe on Ethereum marks another step in the ongoing expansion of the decentralized finance ecosystem.

Imagine waking up one day to find free money in your wallet. Sounds like a dream, right? Well, in the world of cryptocurrencies, this dream can become a reality thanks to a phenomenon known as "airdrops." Airdrops are like a surprise gift from the crypto heavens, where blockchain projects distribute tokens or coins directly into users' wallets, absolutely free of charge.

But why would anyone give away valuable tokens for free? The answer lies in the power of community and network effects. By distributing tokens widely, projects can drum up excitement, attract new users, and encourage existing ones to engage more deeply. It's a bit like a bakery offering free samples - once you've had a taste, you're more likely to come back for more. Plus, airdrops can help to decentralize the network, ensuring that tokens aren't just hoarded by a select few.

Remember, while the prospect of free tokens can be exciting, it's important to stay vigilant. Not all airdrops come from reputable projects, and some may even be scams in disguise. So always do your research before participating in an airdrop, and ensure that you follow all of your local laws and regulations.

Okay, okay, enough of the explaining. Let’s get to the Alpha. Here’s a potential airdrop that caught my eye.The project is called Venom - a sharded blockchain that claims it will handle 100,000 transactions per second. They are extremely well funded - The Venom Foundation partnered with Iceberg Capital to start a $1 Billion fund to invest in blockchain and cryptocurrency projects.

Venom is currently a TESTNET project. This means they’re running a trial version of the blockchain with fake tokens. Anyone can get these testnet tokens for free, and test out the blockchain and its Dapps.

The Venom developers will observe the testnet phase and fix any bugs in the code before they launch their mainnet (real blockchain).

Is an airdrop confirmed? No. But Venom has 22% of it’s tokens allocated to “the community.” Often times, public testnet projects + tokens allocated to community = airdrop. Here’s how to find the project:

Website: Venom.Foundation

Testnet Website: Venom.Network

Twitter: @VenomFoundation

The way the Venom Testnet works is simple.

There are a number of project available to try on Testnet:

Once you complete the tasks at hand for each testnet project, you can earn an NFT for that specific project. What value will these NFT’s will have is yet to be determined.

My speculation is that you’ll be able to earn real $VENOM coins with the NFT’s through a burning or staking mechanism - or $VENOM may simply be dropped to NFT holders.

That’s a wrap for this week. We’ll see you on Monday with a full breakdown of this weekend’s news.

“Spend some time with Bitcoin. Learn it, challenge it, and use it. You can assume no government wants you adopting this system in any capacity, and for that reason alone it’s worth consideration by honest, moral, and industrious people.”

- Erik Vorhees (Founder, ShapeShift)