🔍 Multichain Exploit Was A Rugpull?

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Gm, this is doodhwala, the crypto newsletter that makes life prettay, prettay, prettay interesting! 😎

Here’s what we got for you today:

• ⛓️ Multichain’s Rugpull? : Multichain is showing lotta signs of a rugpull now.

• ⌚ Watch Collaterals: There’s finally utility for NFTs! Just...maybe not the best.

• 📈 Cheese and Charts: LSDfi’s > LSDs

• 🛠️ Resourcewala: Crypto economics? What’s that?

• 🍼 Doodhshots: A new spooky stablecoin awaits approval

🎭 Multichain, What's Up?

So, there's some fishy stuff going on with Multichain. 🎣

Unlike my dating life, where nothing is going on. 💔

Wtf is Multichain?

Think of Multichain as a switchboard operator, connecting calls between different blockchains. 📞⛓️

It's all about enabling that seamless exchange of tokens between different crypto universes. 🌌

Yeah, Multichain. You know that recently experienced "mysterious withdrawals."

Well, a certain firm (name's Chainalysis - they analyze blockchain stuff) thinks it smells of a good old "rug pull." 🤔

What’s a rug pull now? 🤔

No, not this 😂👇

It's when the big guys running a crypto project suddenly take out a chunk of money, leaving everyone else in the dust.

They went ahead and put out a blog post on July 10, 2023, shedding some light on these shady withdrawals that went down on July 6.

These weren't small fries either, guys. We're talking about a more than $125 million hit. 💸

It’s one of the biggest crypto hacks on record.

And Doodhwala is the biggest supplier for crypto milk till now. 🥛

So what's the down-low according to Chainalysis?

They reckon it could be due to compromised administrator keys. And what's juicier? They're hinting it could be an inside job. 🧐

Yup, you read that right.

Now, how does this rug pull work?

1️⃣ Multichain uses something called a multiparty computation (MPC) system. It's kinda like a multi-signature wallet. Yeah, THAT.

2️⃣ Somehow, the "attacker" got their mitts on Multichain's MPC keys.

3️⃣ And then - Bam! Off they go with the cash.

The big question is - who the (tf) is this "attacker"? 😈

Was it some external hacker? Nah, the pros think it's likely an inside job or rug pull because Multichain has been having "internal issues."

And by "issues," we're talking about the CEO, Mr. Zhaojun, straight-up disappearing in late May.

Followed by delayed transactions and a whole lot of tech problems.

This got so bad that even Binance said "Nah, we're out," and stopped supporting some Multichain tokens. 😬

Hold on though! There's more.

In the past few hours, there have been even more strange Multichain token movements.

We're talking about the Multichain executor address draining token addresses across multiple chains.👇

And the icing on the cake? On July 8, Circle and Tether froze over $65 million tied to the Multichain exploit.

But what’s confusing Chainalysis is why the exploiter didn’t switch to centrally controlled assets like USDC, which can be frozen.

It's like a soap opera, isn't it? 😅

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⌚Give Me Your Watch!

The day has finally come y’all!

We have found utility for NFTs (maybe). 🤝

Simply just give us your Watch⌚—

And take loans to…trade JPEGs! 🫰

If you wanna know wtf we're talking about, grab a glass of doodh and read along.🥛🤣

1️⃣ WAAS (Watch as a Service)

You've heard of SaaS, You've heard of PaaS.

Today 4k protocol is happy to announce to you WaaS, a.k.a, Watch as a Service. 🥳

That's right, an NFT trader recently explained how he borrowed $35,000 by using a weird NFT—

An NFT backed by his Patek Philippe watch. 💀

I guess we can start sending Doodh to 4k protocol for NFT collateral then. 🐄🥛

2️⃣ Is this considered a utility? 🤔

Guess what y'all!?

Watch as a Service finally gives utility to NFTs! Just…maybe not the best one yet.

Let's break down how the transaction happened to understand this—

👉 User sends his Patek Philippe watch → to 4k Protocol.

👉 4k protocol sends the user back an NFT of ownership of the watch.

👉 User lists the NFT on Arcade, a DeFi lending protocol.

👉 After finding someone offering $35,000 at 12% ROI, the user borrows loan.

And the utility?

If the user fails to pay back the borrowed loan, then the Loaner can burn the NFT to claim the watch.

Pretty sweet innit? But watches tho? 💀

3️⃣ Argument for centralization

One of the biggest problems that such a utility poses is that it makes it too centralized.

Let’s think about the watch lending example again—

How is that service any different that an existing Gold backed loan?

Or a House-backed loan?

It’s pretty much the same. 🤷

The only difference is that you get cash to use backed by collateral in the first case—

The other involves trading pictures of monkeys and rocks before returning the money back with 12% interest. 🤡

Also, what if I don’t like watches and am just here to give loans?

Does that mean I should become a watch lover if you fail to pay me back the loan?⌚

A lot of blurry spaces yet to be clear doodhs.

Keep consuming cow milk until some solid utility for NFTs arrives. 🥛💪

Doodhwala’s take: We give this utility a 5/10. Neeeeeeeeext.

📈 Cheese and Charts: LSDfi's High Ride

Remember the time when your mom tried to convince you that vegetables are the real deal?

And you disagreed but later on found out that she was right, as always.

LSDfi protocols are kinda like that, popping up from the shadows and surprising us. 🤷‍♀️

First off, what are LSDfi protocols? 🧐

No, it's not an abbreviation for a psychedelic party.

Now, back to our vegetable story. 🥕

LSDfi protocols have just seen their value explode, like a kid discovering broccoli is actually good.

With an influx in total value locked (TVL), it's gaining more attention than your cousin's latest reel dance. 💃

In a span of mere months, cumulative TVL in top LSDfi protocols soared past the $400M mark, more than doubling its TVL in just a month.

Why, you ask? 🧐

The staked ETH post-Shapella has found more takers, amplifying liquid staking adoption.

With an impressive $16.9B in LSDs on Ethereum and a meagre TVL of around $412M in LSDfi protocols, it's clear there's a lot more room to grow.💡

Whether it's kale or LSDfi, it seems we're always late to recognize the real winners.

So, will LSDfi continue its victorious march or will it wilt away like spinach in the sun? 🌞 Let's watch and find out!

🛠 Resourcewala: Navigating The Blockchain Economy

Ever wished to get a head-start in the crypto economic

space but felt like Alice tumbling down the rabbit hole? 😵‍💫

In this universe, where every second person is preaching about Bitcoin, NFTs, or DeFi, feeling overwhelmed is pretty standard! 😩

But hey! Did anyone talk about Institutional Cryptoeconomics yet? 🧐

Let's dive into it:

• What's this Institutional Cryptoeconomics?

• Who's been steering this ship?

• How can this reshape our financial world?

🍼 Doodhshots: Spooky Stablecoin Approvals

• 🦘Coinbase Jumps: Coinbase shares jumped close to 16% after they announced an agreement for 5 Bitcoin ETF applications. Coinbase - The official ETF manager.

• 🔒 Custody Concerns: According to a recent report, the crypto custody market reached a whopping $448 billion in 2022. Better safe than sorry I say!

• 👻 Spooky Stability: Aave members are awaiting to approve the AAVE native stablecoin GHO, which has been in testing since February. Ghost stability lessgooo.

• 🇺🇸 ETF Approvals: Former SEC chair Jay Clayton says the Bitcoin ETFs can get approved if they meet certain conditions. Let’s get those approvals going!

• 🌡️ Celsius Selling: Bankrupt company Celsius could trigger liquidations that can exert selling pressure. She sells Celsius on the sea shore?

🤣 Milky Meme Of The Day

If you want more doodh then, be sure to follow our Twitter, LinkedIn, and Instagram.

That’s all for today folks! See ya tomorrow!

Yo! Our legal and financial advisors (aka our good ol’ conscience) have asked us to add this boring disclaimer. None of what you read here is financial advice. We aren’t here to get you to buy or sell crypto. We’re only here to tell you what’s up in crypto today and make you laugh. So, if you screwed up on a trade, that’s on you G. Stay safe in the markets.

Today’s edition was brought to you by Ritik Gupta and Sumanth

Edited by: Arvind Krishna and Aakash Athawasya