Chinese DeFi Protocol dForce loses $25 million in a hacking attack

https://insidebitcoins.com/news/chinese-defi-protocol-dforce-loses-25-million-in-a-hacking-attack/258003

Chinese-based decentralized finance (DeFi) protocol, DForce, has been attacked. As a result, the company has lost $25 million, which is almost all the total value locked in its system.

A lending platform within dForce network, Lendf Me website, has also been down since the attack.

Mindao Yang, Chief Executive of the dForce platform, has released a statement on the dForce telegram channel. According to him, the security team of the company is still investigating the event and has asked users to stop sending assets to Lendf.Me until further notice. The dForce team also revealed that the Lendf.Me was exploited at block height 9,899,681.

“Lendf.me confirmed it was attacked at 8:45 Beijing time Sunday at block height 9899681,” said dForce in a news bulletin.

Further details of the attack have not been received as the company says any additional details could hinder the investigation into the situation. And it is not clear whether some of the users successfully withdrew their assets before the total seizure of the funds.

imBTC blamed for the attack

In January, Lendf.Me merged with imBTC, an ETH based coin pegged to BTC. But earlier today, there was an exploitation of a liquidity pool for imBTC on Uniswap, a decentralized exchange. This led to the loss of tokens valued at about $300,000.

There are speculations that the attack was enabled by the imBTC, which was utilized as collateral but turned out to be fraudulent.

The attackers took advantage of a loophole in the ERC 777 protocol of imBTC. The platform does not apply updates automatically, which allowed the hackers to call the Uniswap smart contract for funds withdrawal before the updates. It appears that the attacker has already withdrawn several times before the balance was updated on the imBTC platform.

Attack on Lendf.Me similar to imBTC

Many Twitter users believe that the attack on imBTC and Lendf.Me are similar. As the transaction records have indicated, the hacker continuously engineered a withdrawal request to withdraw imBTC, which was sent by the hacker in the first place.

A similar scheme has occurred in the past

This is not the first time hackers have used this type of scheme to steal money. In 2016, about $60 million Ether was stolen using a similar scheme in the famous DAO hack.

Before this hack, Lendf.Me was among the top 10 biggest DeFi markets by value. But the attack will now swing this position far beyond Lendf.Me.

Just a few days ago, dForce raised about $1.5 million from investors from Huobi and Multicoin Capital. China Merchants Bank international, the investment branch of one of China’s largest banks, also participated in the funding.

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Ethereum Launches “Baseline” Protocol, Backed by EY and Microsoft

https://insidebitcoins.com/news/ethereum-launches-baseline-protocol-backed-by-ey-and-microsoft/254465

ConsenSys, EY, and Microsoft have now officially launched the Baseline protocol. This protocol is designed for businesses and enterprises that plan to leverage Ethereum’s public blockchain but in a secure, private way.

Creating Private Networks In Public Chains

The Baseline project itself was announced on the 4th of March, 2020. However, the source code for the project was only published on GitHub within this week, which has made it available to both developers and businesses for the first time.

Baseline was developed with the purpose of allowing enterprises and businesses to build private networks on top of the existing Ethereum blockchain. In typical network conditions, all transactions on Ethereum are open for public scrutiny. In order to avoid this, businesses typically employ their own private blockchains or otherwise leverage an enterprise version of Ethereum.

Leveraging Technology For Data Security

Baseline, however, allows businesses to leverage the public chain of Ethereum without subsequently compromising the privacy of their network through doing so. Baseline leverages zero-knowledge proofs, distributed identity systems, as well as off-chain data storage to ensure that sensitive data stays private within the public blockchain.

ConsenSys gave a public statement about the matter. It explained that the protocol would allow for tokenization and decentralized financial services support within the Mainnet. This will be done in such a way that neither corporate assets nor activities would be revealed to various unauthorized parties in the process. This allows for enterprise data to safely stay within traditional systems without the worry of being uncovered.

Higher Integration With Ethereum’s DeFi

Through using this protocol, businesses will be capable of handling the large amount of transaction processing power that Ethereum holds. This, in turn, makes it easier for various companies to connect their respective activities to the DeFi ecosystem that Ethereum is so well known for.

The announcement itself implies that Baseline was developed primarily for product procurement. An example would be the fact that Baseline is capable of tokenizing information, such as purchase orders and receivables. This information can then be, in turn, handled through a smart contract on the Ethereum network.

The protocol includes a demo as well, called Radish34. This stands as a collaboration between EY and Microsoft that occurred during 2019. This demo demonstrated the potential use for the platform through the management of relationships between buyers and sellers, as well as facilitating real-time calculations when it comes to volume discounts.

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Google Pay Integrates Coinbase Card To Its Offering

https://insidebitcoins.com/news/google-pay-integrates-coinbase-card-to-its-offering/254136

Owners of Coinbase cards that also own android smartphones capable of supporting it are now capable of using their cards without the physical copy. This comes through integration with Google Pay, which was announced on the 17th of march. As it stands now, the card can be emulated through Google Pay on a mobile phone.

Payment Options For Europe Only

The Coinbase Card allows for crypto holders to directly connect with their crypto balance on the exchange itself. This, in turn, can be used to spend crypto on various transactions, thanks to an instant conversion to fiat at the moment of purchase.

As it stands now, the card can only be issued to people situated either within the European Union or within the European Economic Area. However, users within the UK are capable of using it as well. Once this card has been issued, it’s possible to use it wherever Visa cards are supported. It stands as a genuine mainstream integration of the crypto industry.

European Central Bank
Source: Daily Express

Offering A Cardless Card Service

Google Pay allows users to emulate a physical card for offline purchases. It does so by leveraging the NFC chip built into the device. It will enable you to use your smartphone on any terminal that has contactless payment options enabled. Both smartwatches and smartphones are capable of handling the service, but it obviously needs the presence of an NFC chip to work. Thus, most budget-oriented smartphones cannot use the Google Pay service, as it simply doesn’t hold the hardware needed to enact it.

However, there are restrictions in Google pay, since it can’t be used in every country that the Coinbase Card is supported. Countries like the UK, Belgium, Ireland, Finland, Italy, France, Spain, Slovakia, Czech Republic, Croatia, Denmark, Poland, Sweden, and Norway are countries where these services are simply not allowed.

Coinbase made further promises to expand the list of countries that enable this service throughout the coming year.

Google Pay, But No Apple Pay

Through the integration with Google Pay, Coinbase cards can be used instantly after a user has ordered it, as it does not need the physical card to function. Amusingly enough, the iOS counterpart for Google Pay, Apple Pay, has yet to be integrated into this service, as well. As it stands now, no updates have been made as to whether or not any of this will be done, or if it will stay on Google Pay exclusively.

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