TLDR CRYPTO 2023-12-15

LEDGER PATCHES VULNERABILITY AFTER MULTIPLE DAPPS USING CONNECTOR LIBRARY WERE COMPROMISED

Several dapps using Ledger’s wallet connector kit faced security breaches yesterday. This included platforms like SushiSwap, Zapper, Phantom, Balancer, and Revoke.cash. Ledger later announced that the malicious code had been replaced with an updated, safe version of the code. Applications across the crypto ecosystem were vulnerable to this exploit, so it created quite a scare in the space. Fortunately, the attacker only got away with ~$600k in stolen funds, which were later frozen by Tether.

GENSLER SAYS SEC'S 'NEW LOOK' AT SPOT BITCOIN ETF APPLICATIONS HAS INVOLVED RECENT COURT RULINGS

The SEC is reportedly reconsidering spot bitcoin ETF applications in light of recent court rulings, according to SEC Chair Gary Gensler. The reconsideration comes on the heels of a court order requiring a review of Grayscale Investment's bid for a spot bitcoin ETF. In addition to Grayscale, over a dozen applications from major firms like BlackRock and Fidelity are currently under review.

INTRODUCING: SOLANA’S ZK ANCHOR IT’S AN EXTENSION OF ANCHOR LANG SUPERCHARGED FOR ZK

Solana has launched its ZK Anchor, a significant step in its path to Mainnet. It is an Anchor Language extension designed for ZK or Zero-Knowledge obfuscation. Features include a DSL with macros for zk-circuit generation, a command-line interface for building and testing private Solana programs, and an RPC node for interacting with Light Protocol.

ASTRIA EVM: AN EVM ROLLUP POWERED BY THE SHARED SEQUENCER NETWORK

Astria has introduced the Astria EVM, a symbolic virtual machine rollup powered by a shared sequencer network, aimed at serving as Celestia's activity center. Overcoming existing EVM limitations, it incorporates fast and reliable block production. Currently live on the Dusknet-2 devnet, the EVM has been integrated into Dora's multichain search engine. Astria is inviting developers to test the protocol out while on devnet.

WHEN TO SELL YOUR BLOCKS

This post discusses proposer-builder separation auctions, specifically comparing early auctions to just-in-time ones like MEV-Boost. Early auctions sell the right to produce a block prior to its creation. The post paints potential bidders as dominant CEX-DEX arbitrageurs due to high capital requirements, risk management, and less information during early auctions. The impact on users could be beneficial, with features like pre-confirmations, or potentially negative, with challenges like monopoly pricing. Ultimately though, the benefits of early auctions over JIT ones remain unclear.

BUILDING IN THE DARK: MAPPING THE CURRENT CRYPTO PRIVACY LANDSCAPE

This article lays out how current application builders in the crypto space are focusing on solutions that prioritize privacy as data breach concerns continue to grow. New app challengers are rising with privacy-first options, like encrypted messaging apps. The article also presents a detailed comparison among popular privacy technologies including Trusted Execution Environments, Zero Knowledge, Multi-party Computation, and Fully Homomorphic Encryption, each with its own pros and cons.

THE FUTURE OF DIGITAL IDENTITY

This article analyzes the impact of cryptographic technologies like ZK, FHE, MPC, and TEEs on the digital identity landscape. It delves into how the self-custody of personal data and attestation could change with these technologies. The piece also acknowledges challenges in standardizing these fast-developing technologies but envisions a future with decentralized control of digital identities. It concludes by highlighting research areas concerning digital identity, primarily privacy and inclusivity.

ORACLES AND THE NEW FRONTIER FOR APPLICATION-OWNED ORDERFLOW AUCTIONS

This post from Multicoin lays out the firm’s thesis on Pyth Network, an oracle protocol on Solana. While it focuses on Pyth, the analysis can be broadly applied to the oracle landscape in general. Its uniqueness lies within its first-party data, which is directly provided by market makers and trading desks instead of third-party aggregators. This results in less latent, high-quality data brought on-chain. Launched in 2021, Pyth currently delivers data to over 45 different chains and is responsible for securing over $1.7B in value across many prominent protocols in the crypto industry.

AN ALTERNATIVE TO LEDGER

In the wake of yesterday’s Ledger exploit, many were left evaluating switching to alternative cold wallets. This post describes one novel solution, called Grid+.

J1MMY.ETH ONCE MINTED 420 BORED APES… AND HAD NFTS WORTH $150M

This interview with Jimmy McNelis, aka j1mmy.eth, tells the story of a prolific NFT collector who played a big role in the on-chain PFP project and IP rights for holders movements. It also touches on his impressive NFT collecting history.

CRACKING THE CODE: UNVEILING THE DECEPTIVE ‘ANGEL DRAINER’ PHISHING GANG

"Drainer'' phishing gangs like Angel Drainer emerged in 2022, executing sophisticated DNS hijacking attacks on platforms like Balancer and Galxe, stealing millions in assets. This group is suspected to have been connected to the Ledger exploit.

LAYERZERO: THE LANGUAGE OF THE OMNICHAIN

This post from Not Boring gives a good overview of LayerZero and the protocol’s history and roadmap.

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