(14-Aug-20) This Week in Crypto

(14-Aug-20) This Week in Crypto:

DEX’s, failing smart contracts, and Gas Prices!

  • Among the Liquidity Mining and Yield Farming craze that has taken DeFi enthusiasts by storm, YAM is the latest prospect that has blown up on its users. After only two days of operation, the decentralised cryptocurrency went from $500m locked up at a theoretical $183.44 to just $0.74. This was all due to a faulty line of code that allowed contracts to mint more tokens that intended. See the code below:

totalSupply = initSupply.mul(yamsScalingFactor);

Which should be

totalSupply = initSupply.mul(yamsScalingFactor).div(BASE);

  • This is a huge lesson insofar that early DeFi users must be aware of the risks of exposing their assets to what boils down to a collection of smart contracts. Unaudited code, and even audited, your money is always at risk of contract failure. Yam is currently planning on trying again.
  • Ethereum gas prices continue to go berserk. The amount of fees being spent on the Ethereum network is now higher than it has ever been before! Median gas prices are now at 217 Gwei with the mean at 224 Gwei. This is partly due to the growth in DeFi, but also due to the growing dominance of stable coins, such as USDT, which just hit a $12bn market cap. However, the biggest concern is over the purported “Arbitrage Bots” which are believed to make up almost 20% of total TX fees on the Ethereum network.
  • The Block Research have found that Binance, FTX, and Poloniex are the most active crypto exchanges for listing DeFi tokens. This news comes amid BitMex now requiring KYC (Know Your Customer) regulations by February 2021 at the latest. The exchange war is heating up; we can’t wait to see how DEX’s grow throughout 2020/21. Where will Vega fit amongst all this? Join our Discord and discover for yourself!

This Week’s Top Crypto Conversations:

BitMex is requiring user identity verification going forward:

https://twitter.com/CryptoHayes/status/1294076957307441153

BlockVenture’s hot takes on DEXs and DeFi:

https://twitter.com/BlockVentured/status/1294274732506976257

YAM Finance co-founder apologises for failing:

https://twitter.com/VitalikButerin/status/1291231327769915392

A little guide on how to keep your crypto safe:

https://defiweekly.substack.com/p/how-to-keep-your-crypto-safe

Vega co-founder Barney on how to build a DEX:

https://twitter.com/barnabee/status/1293533219791482884

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