GM Digest #170 — Gamma Post-Mortem | Flash Trade Live
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Gamma Strategies Post-Mortem
• @GammaStrategies has shared the post-mortem of the ~$6m Gamma exploit that happened after the Algebra exploit
• Exploiter exposed a defect in deposit proxy configurations for stable and LST vaults. Faulty deposit configurations allowed for a -50% / +100% price change, enabling manipulation and disproportionate LP token minting
• Deposits to all Gamma vaults were immediately restricted to mitigate the attack vector but the total ~$6m was already exploited from Uniswap, Camelot, and Ramses stable pools on Arbitrum
• Gamma has outlined the compensation plan to the affected users in their spreadsheet. There’ll be a one week dispute period for users to dispute amounts lost.
• The creation of a Recovery Pool will be based on current annualized revenues (~$8.97M) for proportional reimbursement. Assuming no revenue growth or decline, approximately 1.73 years for full reimbursement
• The $GAMMA token price has plummeted by 50% after the exploit surfaced. This brings its MC to $9m & FDV to $78m (potential dip-buying depending on whether they’d be able to recover some of the exploited amount)
• Gamma Strategies remains one of the most-utilized Liquidity Management solution for CLAMM DEXes. Their TVL fell from $124m pre-exploit to $78m
Flash Trade on Mainnet
• @FlashTrade_ is a perpetual and spot DEX on Solana, offering up to 100x leverage
• It operates on a unique pool-to-peer model that uses Pyth oracles for dynamic pricing and features a backup oracle system
• Additionally, Flash Trade released 3D yield-bearing NFTs, called Flash Beasts, which evolve with interaction and function as trading accounts while offering rewards and fee shares
• These NFTs also play a central role in the platform by being the initial traders and can invite others through referral links, with evolving levels offering increased trading fee discounts and rebates
• The holders of the NFTs will also be eligible for an airdrop when the Flash Trade token launches
TokenSight x AIT
• @TokenSight_Io is partnering with AIT Protocol, a platform merging artificial intelligence with blockchain through a Train-to-Earn mode
• This partnership will foster AI model training and data annotation, creating a decentralized labour market for AI development
• As part of the collaboration, AIT Protocol will develop an AI Bot for TokenSight to enhance customer support through advanced algorithms and natural language processing
• TokenSight is a DEX platform on Ethereum with features like trade orders, copy trading, and alerts
Introducing Nubit
• @nubit_org is the first Bitcoin-native Data Availability Layer and backed by founders of @bounce_finance, @domodata and many others
• Nubit adopts PoS consensus, paired with Bitcoin staking solutions like @babylon_chain. Additionally, Nubit refines DA Attestation and Sampling, using Bitcoin as a foundational trust layer
• Lastly, Nubit introduces a decentralized Bitcoin-native bridge controlled by a consensus-elected signer group each epoch
Hyperliquid Latency & Ordering
• @HyperliquidX L1 has a novel microstructure benefiting retail and makers over toxic takers & Hyperliquid is optimized for the end user, period. Not for VC metrics, fees, or HLP pnl
• In the latest medium article by Hyperliquid, the team has highlighted the problem that arises for Orderbook Model that sacrifices a “well-designed” principle and invites toxic flows from HFT takers
• Hyperliquid makes a fundamental adjustment to the onchain order book: Cancels and post-only orders are prioritized above GTC and IOC orders. The ordering saves users hundreds of dollars per trade at fraction of a second (retail users barely notice the ordering)
• Suggests taking the full read HERE
Misc News
• @MerchantMoe_xyz is live on Mantle
• @AureliusFi announces CoM NFT holders will be eligible for rewards
• @CelsiusNetwork announced that they have begun unstaking Eth to pay creditors
• @Sagaxyz__ announces airdrop eligibility criteria for @Cosmos, @CelestiaOrg, @0xPolygonLabs, @Solana and @AVAX communities
• @synthetix_io announced their Andromeda Release on Base and will now use 40% of Perps V3 fees to buy back and burn $SNX tokens
• @FantomFDN reduced their validator self-stake requirement from 500k to 50k FTM
• @bakery_swap announces plans to expand to @MantaNetwork
• @republicnote announced that they will be launching on @avax
• @Bracket_Labs_ announced a pre-seed funding round of $2M from Binance, NGC, Cypher, and more
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*