Davyan

[Claynosaurz @Claynosaurz]

Claynosaurz is now streaming on Amazon Prime Video

[Davyan @davyanzh]

No aura?

Use code 'bulktrade' to start auramaxxing and move up the @bulktrade mainnet waitlist https://t.co/zf2jdqg7tW

[Davyan @davyanzh]

@Crypto_Zh0u @solsticefi @Loopscale i tried with pt-usx/usx and it doesn't count

[Davyan @davyanzh]

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[BULK @bulktrade]

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[Inkblot Genetics @InkgeneticsNFT]

Early WL application is live.

This process is exclusively open to the first few people, who love art and understand the concept not just for flipping.

Next application will be through form to cater to everyone.

Apply : https://t.co/f5fcoP43sS

[Davyan @davyanzh]

@jayowtrades @solsticefi funny those cry over the tl with 99% token vest are the xeet yappers that barely use the platform (close to 0 s1 base)

[Davyan @davyanzh]

@unipixnft 0xaEC56a444e8A3219340BCBbb1fBD0ccA1A8Bf1FC

[Davyan @davyanzh]

@Xtract0rr @Antna_io yes

[Davyan @davyanzh]

@unipixnft 0xaEC56a444e8A3219340BCBbb1fBD0ccA1A8Bf1FC

[Route 2 FI @Route2FI]

After Aave got bad debt --> normal users rushed to withdraw ETH/stables --> pools slammed to 100% utilization = no one can get out.

Stuck depositors realized they couldn’t withdraw but could still borrow --> they maxed their credit, yanking out as much stables as possible via loans.

Lenders turned into leveraged borrowers on a pool that already had a hole --> risk spirals higher.

Whales/normies/treasuries pulled almost $8B from Aave and derisked on other similar protocols (Morpho, Sky, Fluid, Kamino, etc.) --> bridge/LST collateral is now “radioactive” in the eyes of serious money. Heck, many people won't even deposit USDC/USDT alone. Simply because it's not worth it for 3% APY, since you might lose 100% of your capital.

DeFi works as intended, but at what cost? Will be interesting to see what comes out of this.

[Davyan @davyanzh]

"This is not DeFi"

[Duo Nine ⚡ YCC @duonine]

🚨 I don't think people realize how bad things are at @aave right now.

All core markets are at 100% utilization, that includes $3 bil in USDT and $2 bil in USDC stuck!

That means you CAN'T WITHDRAW your money!

A long post on why and how we ended up here.

When the rsETH exploit happened and AAVE incurred bad debt, whales like Justin Sun, MEXC exchange, and others immediately withdrew billions from AAVE.

This instantly drained all available liquidity in key core markets like ETH, USDT, USDC and so on. Those first to withdraw got out, laggers got trapped.

Initially, the ETH market hit 100% utilization, meaning you could not withdraw your ETH from AAVE.

Worse, this also means the protocol can't process ETH liquidations should ETH price fall/crash. If you can't sell any ETH, you can't liquidate to cover debt obligations.

That means the risk of more bad debt incurred by AAVE is increasing the longer its markets remain stuck.

Nevertheless, users can still sell at a minor loss the aETHwETH tokens on Uniswap or similar aggregators. That exit door is the last one remaining for ETH depositors on AAVE.

The same cannot be said by depositors of USDT and USDC. They are stuck.

That's because AAVE lost over $6 billion in liquidity in the past 24h. As whales took out their money, USDT and USDC also hit 100% utilization.

These markets are now also stuck with money locked. Panic is spreading and desperate times call for desperate measures.

Some users decided to borrow against USDT/USDC and exit via other markets at a 10-25% loss (90-75% LTV). Basically you borrow GHO/DAI/USDe against your locked USDT/C.

But as more liquidity leaves AAVE, more markets get to 100% utilization and get locked/stuck due to low liquidity. This is quickly cascading across all available markets.

Luckily the crypto market was rather flat today so liquidation risks were marginal, but if things change there are billions in stablecoins and other assets locked on AAVE that can't process liquidations = more bad debt for AAVE.

If users or related protocols that are stuck need access to their money to prevent liquidations or other critical function, they have a huge problem on their hands.

Plus, nobody wants to deposit (or provide liquidity) in these markets now since your ETH, BTC, USDC/T could be stuck there for who know how long.

As soon as any available liquidity is made available, it is instantly taken out by bots fighting to get out. As I wrote this I saw 250k in liquidity on USDC vanish in seconds.

Then there is the bad debt question.

There's over $200 mil in bad debt incurred by AAVE via rsETH that's like a hot potato. Nobody knows who will eventually pay this bill.

If you didn't remove your assets from AAVE, you risk receiving at least part of that bill in some form. Not having access to your money is part of that risk too.

Contagion is also extremely high.

Many protocols and apps rely on AAVE for their earn mechanics. These protocols and their users are stuck too and may be forced to incur bad debt with no fault of their own.

October 10th was a CEX driven crash, this is a DeFi risk mitigation failure of epic proportions.

AAVE should have never onboarded rsETH as a collateral asset, at least not to the size of hundreds of millions that allowed the hacker to walk away (i.e. borrow) over $200M in ETH after posting fake collateral.

Rumors on X are saying rsETH was onboarded by AAVE due to a conflict of interest (lobbying) by a given service provider. If true, this is a major failure of its governance structure (nothing new).

The folks at @KelpDAO who manage rsETH also have a tough decision to make on who will actually pay for the $200M exploit. AAVE users? L2 rsETH users? Everyone affected gets a haircut to account for the loss?

The AAVE team and its founder, Stani, have been quiet for over 20h since the exploit after initially announcing the rsETH market freeze.

They have a pretty big problem on their hands since the whole protocol is at risk right now. Trust is already lost as AAVE is bleeding billions in TVL to the level of hitting 100% utilization on all core markets.

Maybe some key actors in the space will step in to provide liquidity to stabilize the markets on AAVE before this gets even worse.

I got lucky to get out of AAVE early when I first saw this. I also removed all assets from DeFi and will not touch any protocol in the next few weeks. Too much risk for a few percentage points in yield.

If you found this informative, like, share, and follow @duonine

[The White Whale @WhiteWhaleLabs]

I had to look up what the hell a Kelp DAO was (I don’t really spend time on ETH)

But then again a couple weeks ago I’m sure there were those who had to Google what Drift was.

I know it’s tempting to grave dance on AAVE for their response considering some comments made by an AAVE representative a couple weeks ago but I call on us all to be better. Once again real users have lost real money in this space.

AAVE did the right thing by freezing a pool. But it’s just another reminder that if a “DeFi Protocol” can freeze something for a good cause there will be protocols that freeze for bad reasons.

I’ve come to the conclusion DeFi is a banner companies use to avoid liability for not protecting user funds.

[Velocity @VelocityDEX]

Earlier today, a malicious actor gained unauthorized access to Drift Protocol through a novel attack involving durable nonces, resulting in a rapid takeover of Drift’s Security Council administrative powers.

This was a highly sophisticated operation that appears to have involved multi-week preparation and staged execution, including the use of durable nonce accounts to pre-sign transactions that delayed execution.

[mert @mert]

not 100% fully certain yet, but it seems drift might be getting exploited

monitor your positions

[Davyan @davyanzh]

@solanagaming @solanamobile @burnandclaim davyan.skr

[Davyan @davyanzh]

@Cofbutter @Vinayak191120 @zachxbt any clue who is the sender? i also got 250

[Davyan @davyanzh]

so $ZEC is the alt season you are looking for 🫠

[Cobie @cobie]

When ppl claim this I always wonder how they think it happens, or have unrealistic expectations on how much $1bn actually is.

I joined crypto with $200. If I held my initial bitcoin since then and never traded, I would have ~$300k.

If, instead, from that moment I sold the top and bought the bottom of every crypto cycle on Bitcoin, and never paid any taxes, I would have ~$6m USD.

If I put my entire net worth into the Ethereum ICO and never touched it, today I would have ~$150m pre-tax.

While it was definitely possible to have made >$1bn with the opportunities in the market, these versions of reality would also require me to make no mistakes, and have no need to spend $ in real life, or take excessive risk via leverage.

In reality, I grew up in a working class family. I didn’t have a trust fund and I had to pay off my student loan myself. I had a job at Tescos while at high school. After university, I needed to pay rent and fund cost of living and eventually buy a place to live.

I worked at startups for relatively little $ salary, and while a couple have done okay, they still are illiquid and worth nothing until some exit.

Perhaps if I erase a couple of dumb mistakes and drawdowns, or if I had a lil more grind, then my answer would be different today. But it is easy to say this with perfect hindsight vision. It’s easy to see where you could have optimised better, and decisions you made look dumb when the past makes things so obvious.

The truth is I have always optimised for enjoying my life and not going to 0. I never felt like I had a safety net, so it was never possible for me to do anything in any other way. I would probably have less money if I had tried to add more risk or chased $ harder, because being all-in with your entire livelihood is a mental battle and I feel I only win that battle when the stakes are lower.

In writing this, maybe I do understand why CT folks believe this, because modern CT sees crypto as a late-stage lottery ticket farm, where the optimal strategy is to 5x leverage up your portfolio in a hope of catching a good 20% move and then leaving. Or, literally going all-in on the next coin they heard Ansem is buying. So perhaps to them, looking back at the charts, of course that’s what successful folks did.

In reality, I use leverage close to never (and typically to reduce risk rather than add risk — have used it to add risk maybe 3 times in the last 5 years, and maybe 15 times ever). I never go all-in on anything, have only ever done that on BTC and ETH before in the last decade. When I buy other things, I limit risk to tiny amounts, because I treat it as a 0 until proven otherwise (so, always <1% liquid portfolio). Liquid portfolio is also a smaller % of overall portfolio to future-proof against my own fuckups.

Obviously I made a lot of money, I have been here 12 years! CT doesn’t want to hear about “getting rich in a decade” though. I am happy with where I am and have never really cared or optimised for maximising $ earnings, but instead having a nice life that lets me enjoy the game we play together.

[echo @echodotxyz]

Anyone that ever invested in a deal on Echo should be eligible for Monad airdrop. Sending instructions on how you can add your claim to their site shortly. Gmonad.