Danny Sacks

defi stuff here. prev @twitter @scuba_inc @oracle

[Danny Sacks @danny_sacks]

“Idea Guy” supercycle (real)

[Danny Sacks @danny_sacks]

Losses should be socialized across anyone who tweeted “just use aave”

[The Defiant @DefiantNews]

🚨 BREAKING:

AAVE @aave governance post details the amount of bad debt it has under 2 scenarios:

Scenario 1 (uniform socialization of rsETH) produces $123.7M in bad debt, concentrated on Ethereum Core (Aave deployment on Eth mainnet) in absolute size terms and most acute on Mantle in proportional terms.

Scenario 2 (losses isolated to L2 rsETH) estimates $230.1M in bad debt, all on L2s. Mantle faces a 71.45% WETH shortfall and Arbitrum 26.67%; Ethereum Core is unaffected.

"As of April 20, 2026, the DAO treasury holds $181 million in assets," the report said.

"Which scenario materializes depends on decisions outside Aave's control, primarily how rsETH accounting and the LRTOracle exchange rate are updated," Aave said.

https://t.co/wh1lHhkDQC

[Danny Sacks @danny_sacks]

I'm tired, boss.

[Jeremy @Jeremybtc]

Kelp DAO appears to have been exploited for $293 MILLION in the last hour, making it the biggest DeFi hack of 2026.

And it's far from being the only one this month.

Over $600M stolen from DeFi in the last 2 weeks across over 10 different protocols, and AI is only making it easier for hackers.

> Kelp DAO: attacker exploited the LayerZero bridge to drain 116,500 rsETH ($293M), then used it as collateral on Aave to borrow ETH, leaving Aave with bad debt as $AAVE dumps.

> Drift Protocol: $285M drained by North Korean hackers using AI powered social engineering, they spent months building trust with insiders before executing in 12 minutes.

> Rhea Finance: $18M stolen through fake token pools that tricked the protocol's oracle into approving withdrawals.

> Grinex: $15M stolen, sanctioned Russian exchange suspended all operations and blamed "Western intelligence".

> Hyperbridge: attacker minted 1 billion fake bridged DOT with a notional value over $1B, but only extracted about $237K because liquidity was thin.

> BSC TMM pool: $1.67M drained through reserve manipulation.

> Aethir: $423K lost in an access control exploit on their GPU network.

> Dango: $410K stolen through a smart contract bug in their bridge aggregator.

> Silo Finance: $392K gone from a misconfigured oracle.

> CoW Swap: frontend hijacked through DNS attack, site redirected to a phishing page.

> Zerion: hit by North Korean social engineering, credentials stolen.

The attack surface is expanding faster than the defenses.

This is only going to get worse.

[Danny Sacks @danny_sacks]

@AaronKandaGym @DanBurmawy Oh sweet, sweet summer child

[Danny Sacks @danny_sacks]

@jacktripper777 @grok @IanMalcolm84 @elonmusk holy shit you are a fucking loser 🤣

[Danny Sacks @danny_sacks]

@cenkuygur He died like a dog

[Danny Sacks @danny_sacks]

@songadaymann 0/70000 were militants, obviously

[Danny Sacks @danny_sacks]

@etnom “We have acquihired an international crabbing operation and will be moving our HQ to Maine.”

[Danny Sacks @danny_sacks]

the 60% retained:

[jack @jack]

we're making @blocks smaller today. here's my note to the company.

####

today we're making one of the hardest decisions in the history of our company: we're reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are being asked to leave or entering into consultation. i'll be straight about what's happening, why, and what it means for everyone.

first off, if you're one of the people affected, you'll receive your salary for 20 weeks + 1 week per year of tenure, equity vested through the end of may, 6 months of health care, your corporate devices, and $5,000 to put toward whatever you need to help you in this transition (if you’re outside the U.S. you’ll receive similar support but exact details are going to vary based on local requirements). i want you to know that before anything else. everyone will be notified today, whether you're being asked to leave, entering consultation, or asked to stay.

we're not making this decision because we're in trouble. our business is strong. gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. but something has changed. we're already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. and that's accelerating rapidly.

i had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. i chose the latter. repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead. i'd rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome. a smaller company also gives us the space to grow our business the right way, on our own terms, instead of constantly reacting to market pressures.

a decision at this scale carries risk. but so does standing still. we've done a full review to determine the roles and people we require to reliably grow the business from here, and we've pressure-tested those decisions from multiple angles. i accept that we may have gotten some of them wrong, and we've built in flexibility to account for that, and do the right thing for our customers.

we're not going to just disappear people from slack and email and pretend they were never here. communication channels will stay open through thursday evening (pacific) so everyone can say goodbye properly, and share whatever you wish. i'll also be hosting a live video session to thank everyone at 3:35pm pacific. i know doing it this way might feel awkward. i'd rather it feel awkward and human than efficient and cold.

to those of you leaving…i’m grateful for you, and i’m sorry to put you through this. you built what this company is today. that's a fact that i'll honor forever. this decision is not a reflection of what you contributed. you will be a great contributor to any organization going forward.

to those staying…i made this decision, and i'll own it. what i'm asking of you is to build with me. we're going to build this company with intelligence at the core of everything we do. how we work, how we create, how we serve our customers. our customers will feel this shift too, and we're going to help them navigate it: towards a future where they can build their own features directly, composed of our capabilities and served through our interfaces. that's what i'm focused on now. expect a note from me tomorrow.

jack

[Danny Sacks @danny_sacks]

@Crypto_McKenna hip-3 volume been holding $2B+ daily even through the chop which is usually the tell before technicals catch up. the trend score flip matters less than whether spot follows the perp setup this time

[Danny Sacks @danny_sacks]

@zerohedge deflation usually kills risk assets but crypto markets seem increasingly disconnected from traditional macro cycles. saw this during the march 2020 deflationary scare - bonds rallied, stocks dumped, but defi kept building

[Danny Sacks @danny_sacks]

@TimHaldorsson TGE sentiment is just table stakes now tbh

real alpha is in tokenomics design - vesting schedules, circulating supply curves, utility alignment. seen too many "perfect" launches die because the token had no reason to exist beyond speculation

[Danny Sacks @danny_sacks]

@MacroCRG dalio praising the new fed chair while running the world's largest macro hedge fund is exactly the kind of endorsement that should make everyone nervous

polymarket already had this priced in 3 days ago btw

[Danny Sacks @danny_sacks]

@zerohedge traditional safe withdrawal rates assume TradFi asset allocation tho - the entire framework breaks when you factor in programmatic yield from protocols that didn't exist when these models were built

[Danny Sacks @danny_sacks]

@TimHaldorsson the settlement layer is key here - most bounty systems fail because dispute resolution is either centralized or non-existent. onchain escrow with automated milestone verification could work, but you need proper oracle infrastructure for deliverable validation

[Danny Sacks @danny_sacks]

@DonAlt speedrun any% insolvency route unlocked

though tbf the memecoin treasury strategy was always gonna have a shorter half-life than actual policy. at least we got content

[Danny Sacks @danny_sacks]

@Crypto_McKenna dotcom hangover lasted 15 years before the next real cycle though. crypto did 2017, 2021, and arguably has spot etfs now pumping institutional flows

the mania recovery feels faster each time because the infrastructure catching the next wave actually exists now

[Danny Sacks @danny_sacks]

@arthur0x the liquidity extraction timeline is speeding up every cycle. traders eating each other faster now that retail stopped showing up to refill the pool

perps funding staying positive while spot volume dies tells you exactly who's left at the table

[Danny Sacks @danny_sacks]

@MacroCRG saylor cost basis headlines always mark local bottoms. retail sees red number and panics, smart money sees forced seller exhausted.

funding flipped negative before the spike too. derivatives called it again

[Danny Sacks @danny_sacks]

@KeyboardMonkey3 the leverage slider is doing exactly what it was designed to do. exchanges figured out years ago that giving degens 100x is more profitable than 10x even if account lifespans drop 80%

the house always wins faster when you let players bet bigger

[Danny Sacks @danny_sacks]

@zerohedge onchain perps barely moved though - while spot btc dropped 4%, hyperliquid vol stayed flat. derivatives markets showing way more stability than the underlying. interesting decoupling happening