Seneca

Seneca is an omnichain CDP protocol for yield-bearing assets.

Stake $SEN to earn real yield.

Live on #Arbitrum and #Ethereum.

[Seneca @SenecaUSD]

As the causes of the exploit have now been identified, we are working on remediations to make the Chamber contracts safe again.

The exploit didn't involve Seneca's TVL directly but rather funds held in the wallets of users that previously guaranteed unlimited approval to the Chambers.

The possibility of using a third-party address to maliciously call the Chamber contracts was not previously acknowledged. Seneca's Chamber contract previously underwent a comprehensive audit by @HalbornSecurity.

We are now coordinating with various parties on the review of the mitigations that we're putting in place.

As security is always our main priority, we are committing all our efforts to ensuring the following Chambers release will prevent any similar issues.

Because the attack vectors were not evident and were not detected in our prior audit conducted by one of the biggest security companies, we are being extra cautious and carefully pondering each code mitigation.

It is a lengthy path possibly including another independent audit of the final code yet it's the only one that guarantees a stable future for Seneca.

In the meantime, development of the v2 protocol version (multi-stablecoin; synthetics) keeps going forward.

What to expect next:
• Security implementation completion
• Independent review
• New Chamber contract deployment
• Resuming of incentives
• Seneca v2 rollout

In the midst of a major security incident, we are happy to acknowledge that we've managed to react in a timely way, preventing more users from falling victim to the exploit through the blacklisting of the exploited contracts right after the first few malicious transactions were conducted.

The recovery of 80% of the stolen funds has also been great news for all users involved. All reimbursements have already been processed.

An exploit is never good news for a protocol, but we'll make sure it's an obstacle that Seneca overcomes and quickly leaves behind.

Together, for a more capital-efficient DeFi. 🏛

[Seneca @SenecaUSD]

All reimbursements have now been processed.

Reminder for Arbitrum users: your reimbursements have been processed on the Ethereum Mainnet.

In these unfortunate circumstances, it’s important to remember that Seneca’s Chamber contract previously underwent an audit with one of the most well-known security companies in the industry.

Although an audit is never a full guarantee of safety, Seneca’s commitment to security has never been in question.

As a result, we are already working on mitigations for the upcoming releases. All mitigations will undergo extensive examination before deployment.

More information will be posted in a dedicated article.

[Seneca @SenecaUSD]

Seneca Exploit: Post-Mortem

After the exploit, a thorough post-mortem analysis was conducted to pinpoint the cause of the breach.

Refunds will be processed as our plan is put into action.

For details, see the article below.
https://t.co/kABuslb5Pa

[Seneca @SenecaUSD]

@0xCZN @asen_sec @sherlockdefi The contest has been cancelled due to Sherlock’s request, to which we complied.

Seneca did not initiate the request to cancel the contest in any form whatsoever. We have proof to verify this.

[Seneca @SenecaUSD]

We're happy to see 80% of funds have been returned.

Transaction link: https://t.co/sLGKmkGOku

The exploit involved assets held in users' wallets. The exploit didn't involve funds directly deposited into Seneca (Seneca's TVL).

The recovery of funds through a whitehat request was an extremely optimistic scenario.

It's important to note that Seneca's Chamber contract was audited prior to deployment (@HalbornSecurity).

🔗https://t.co/ucEK4S9r6E

The Chamber code deployed is the exact same as that which underwent the audit, except for fixes explicitly suggested by the auditing company and implemented in the precise ways indicated.

An audit is in no way a guarantee of absolute safety, but it's worth noting that Seneca chose to work with a major auditing company for the very purpose of securing the Chamber contract.

We're still collecting information to issue a post-mortem update.

The post-mortem will be posted as soon as possible.

[Seneca @SenecaUSD]

Dear Whitehat,

Please return the funds to the following Ethereum wallet address: 0xb7aF0Aa318706D94469d8d851015F9Aa12D9c53a

We are collaborating with third-party security providers and law enforcement to trace the funds and identify recipient wallets. Acting promptly is crucial, so we kindly request that you return the funds as soon as possible to avoid any further legal action.

A 20% bounty may be kept as per whitehat efforts.

[Seneca @SenecaUSD]

We continue investigating the exploit and proactively reaching out to third parties for support.

Security always comes first for Seneca, that's why we chose @HalbornSecurity for the audit of the Chambers contract and adhered to best practices for oracle management.

The exploit involves a malicious call for users' approvals for Chambers.

A post-mortem will be published once all information is collected.

[Seneca @SenecaUSD]

@ljmanini @sherlockdefi https://t.co/uM9i1nL5ri

[Halborn @HalbornSecurity]

📢 We are happy to announce that we have successfully completed our smart contract #security assessment for @SenecaUSD🔒—an omnichain #CDP protocol for yield-bearing assets, SOON to launch on @arbitrum 💙🧡

🔗 Full report available: https://t.co/MQmifsnw6d

[Seneca @SenecaUSD]

@qedk_ @sherlockdefi https://t.co/uM9i1nL5ri

[Halborn @HalbornSecurity]

📢 We are happy to announce that we have successfully completed our smart contract #security assessment for @SenecaUSD🔒—an omnichain #CDP protocol for yield-bearing assets, SOON to launch on @arbitrum 💙🧡

🔗 Full report available: https://t.co/MQmifsnw6d

[Seneca @SenecaUSD]

We are actively working with security specialists to investigate the approval bug found today.

In the meantime, REVOKE approvals for the following addresses:

#Ethereum
PT-ezETH 0x529eBB6D157dFE5AE2AA7199a6f9E0e9830E6Dc1
apxETH 0xD837321Fc7fabA9af2f37EFFA08d4973A9BaCe34
PT-weETH 0xBC83F2711D0749D7454e4A9D53d8594DF0377c05
PT-rsETH 0x65c210c59B43EB68112b7a4f75C8393C36491F06

#Arbitrum
PT-weETH 0x11446bbb511e4ea8B0622CB7d1437C23C2f3489b
stEUR 0x7C160FfE3741a28e754E018DCcBD25dB04B313AC
PT-aUSDC 0x4D7b1A1900b74ea4b843a5747740F483152cbA5C
wstETH 0x2d99E1116E73110B88C468189aa6AF8Bb4675ec9
PT-rsETH 0x2216E32006BB80d20f7906b88876964F9AF68aFb

We will post an update shortly.

[Seneca @SenecaUSD]

PT-rsETH Chamber. 🏛

The PT-rsETH Chamber (@KelpDAO x @pendle_fi) is now live on #Arbitrum, with a current borrowing capacity of 200,000 $senUSD.

🔗 https://t.co/PiL3KPv33z

Users can now borrow $senUSD against PT-rsETH, all while earning fixed yield on their collateral.

[Seneca @SenecaUSD]

PT-eETH Chamber. 🏛

The PT-eETH Chamber (@ether_fi x @pendle_fi) is now Live on #Arbitrum, with a current borrowing capacity of 200,000 $senUSD.

🔗 https://t.co/PiL3KPv33z

Users can now borrow $senUSD against PT-eETH, all while earning fixed yield on their collateral.

[Seneca @SenecaUSD]

PT-ezETH Chamber. 🏛

The PT-ezETH Chamber (@renzoai x @pendle_fi) is now live on #Ethereum, with a current borrowing capacity of 200,000 $senUSD.

🔗 https://t.co/PiL3KPv33z

Users can now borrow $senUSD against PT-ezETH, all while earning fixed yield on their collateral.

[Rarestone Compass @rstonecompass]

Rarestone Compass proudly presents the AMA with Seneca!

Seneca is an omnichain CDP protocol for yield-bearing assets.

Join us on tomorrow at 2 PM UTC!

Venue: https://t.co/GvosBFANjZ

https://t.co/58Q7vhoUkp

[Seneca @SenecaUSD]

PT-eETH Chamber. 🏛

The PT-eETH Chamber (@ether_fi x @pendle_fi) on #Ethereum has currently reached its maximum borrowing capacity.

• 750,000 $senUSD borrowed
• $1,700,000+ PT-eETH TVL

Additional $senUSD will be available for borrowing soon. ⌛️

[Seneca @SenecaUSD]

senUSD LP Incentives. 🏛

The incentives for the senUSD/USDC pool on #Ethereum have been boosted.

Current APR: ~152%

🔗 https://t.co/kwxKMlf85G

Deposit liquidity on @CurveFinance to earn $SEN incentives. ⌛️

[Seneca @SenecaUSD]

apxETH Chamber. 🏛

The apxETH Chamber (@redactedcartel) is now Live on #Ethereum, with a current borrowing capacity of 200,000 $senUSD.

🔗https://t.co/PiL3KPv33z

Borrow $senUSD against $apxETH while earning #LSD yield on your collateral. ⌛️

[Seneca @SenecaUSD]

Staking Update. 🏛️

$sSEN is now accruing $SEN rewards.

$sSEN is:
• auto-compounding
• accruing value through ratio changes
• fully composable (DeFi Lego).

Already accrued $WETH rewards will remain open for claim.

Stay tuned for $sSEN DeFi integrations. ⌛️

[Seneca @SenecaUSD]

senUSD LP Incentives. 🏛

Earn $SEN incentives by depositing liquidity into the senUSD/USDC pool on #Arbitrum or #Ethereum.

APR on Ethereum: ~111%
🔗 https://t.co/kwxKMlf85G

APR on Arbitrum: ~73%
🔗 https://t.co/99UYv2pLss

[Seneca @SenecaUSD]

Protocol Update. 🏛️

As Seneca crossed $1 million in TVL, we marked the first milestone of its bootstrapping phase.

A. Expansion Phase
B. Liquidity Avenues
C. Staking Update
D. Seneca V2: Liquidationless Borrowing
E. Upcoming Collaterals

Keep reading to learn what's coming for DeFi's Capital Efficiency Layer. ⌛️

—————————————————

A. Expansion Phase. 🏛️

Seneca unlocks new opportunities for DeFi, with the increase in usage and adoption fueling the value accrual for $SEN and the protocol as a whole.

As organic adoption of Seneca's Chamber just started, the incentives can now be fully allocated, fostering steady and continuous target growth.

Deeper liquidity enables more borrowing, and borrowed $senUSD can easily be paired with other stablecoins to earn $SEN rewards.

The tailored incentives system ensures a balance between the protocol's growth and the quantity of $SEN tokens introduced into the market.

New Chambers, deeper $senUSD liquidity, more TVL, more fees: Seneca now enters its Expansion Phase.

—————————————————

B. Liquidity Avenues. 🏛️

Liquidity is key to ensuring the protocol gets maximum usage, giving users the opportunity to get the most value out of DeFi's Capital Efficiency Layer.

Seneca is expanding the liquidity avenues for $senUSD on both #Arbitrum and #Ethereum.

Concentrated liquidity can be hard to manage for some users, time-consuming for others.

That's why Seneca streamlines the whole process with @mavprotocol's Boosted Positions and @GammaStrategies's Active Liquidity Management Vaults.

Supplying liquidity on both avenues, on #Ethereum and #Arbitrum respectively, will be fully incentivized with $SEN rewards.

The growth of $senUSD liquidity on @CurveFinance pools will keep being incentivized, while new Concentrated Liquidity avenues will ensure maximum $senUSD depth within the thin price range around the $1 peg.

—————————————————

C. Staking and Tokenomics. 🏛️

Seneca earns fees from the protocol's usage: opening fees, interest fees, and liquidation fees.

TVL growth translates into protocol revenue, with $sSEN holders benefiting from it.

Staking $SEN gives access to revenue share, with protocol usage being a key driver for the $SEN token's appreciation.

While Seneca scales to widespread adoption, there is a need to lay the foundations for a more consistent value-accrual chain.

The following improvements will take place in order to better reward $SEN holders and increase protocol-token alignment:

- $sSEN compounding starts (sSEN/SEN staking ratio)
- $SEN proportional to protocol fees allocated to the $sSEN module
- $SEN from unallocated 'Incentives' emissions allocated as yield boost
- Accrued, leftover $WETH fees allocated to buybacks and Protocol Owned Liquidity
- $SEN proportional to protocol fees burned and steadily removed from circulation.

All the improvements translate into the following:

• Stakers now accrue additional $SEN seamlessly
• $sSEN is auto-compounding
• $SEN reaching the market remains fully proportional to the protocol's growth
• Expected emissions are never exceeded
• A sustainable deflationary mechanism is introduced ($SEN burns proportional to protocol fees).

As the $sSEN module is already deployed, there's no need to unstake and re-stake the token.

$WETH daily claims will be paused in the next few days, while the already accrued $WETH will remain available for claim for all users.

$sSEN value accrual comes without the need for daily claims. The increase in $sSEN ratio is reflected upon unstaking. Unstaking a partial quantity of the holdings is always possible.

$SEN staking remains free of any lock or vesting, except for the standard 24-hour lockup.

All these improvements will further lead to and accelerate the path for $sSEN Chambers, where users will be able to borrow $senUSD against their yield-bearing and auto-compounding $SEN holdings.

—————————————————

D. Seneca V2: Liquidationless Borrowing. 🏛️

Seneca allows users to borrow $senUSD against the best DeFi assets.

Seneca serves as DeFi's Capital Efficiency Layer.

While borrowing a dollar-pegged stablecoin in bullish market conditions can often lead to heightened returns, there's always the need to exercise caution around liquidation prices, on-chain liquidity depth, and market volatility.

As the market has chosen $ETH staking and its derivatives as the industry-leading DeFi yield solutions, there is a need for a more seamless manner to bring heightened capital efficiency to all of those.

Seneca V2 is expected to be released in Q2 and it brings:
+ multi-stablecoin support
+ liquidationless borrowing
+ security buffer mechanisms.

Seneca V2 release comes with $senETH, a synthetic $ETH derivative that can be seamlessly borrowed against the best #LSD and #LRT assets.

As $ETH derivatives come with yield and various sources of value accrual, there is an intrinsic value gap between $senETH and the derivatives it is borrowed against, making the synthetic overcollateralized by definition during most market conditions.

Seneca will use a variety of supported assets, with specific capacities set for each of those, and will use a portion of fees to constitute active security buffers and measures for the support of the $senETH peg.

The main difference between pure synthetics and Seneca's hybrid approach is that Seneca users retain the ability to pay back the $senETH to withdraw their very own collateral, with full support for debt self-repayment strategies.

Ultimately, this design allows Seneca to expand and support more stablecoins, from the dollar-pegged $senUSD to $senETH to synthetics of staking derivatives of other major EVM chains.

Another proof of Seneca's commitment to the interconnected cross-chain DeFi ecosystem, leveraging @LayerZero_Labs integration capabilities to the fullest.

—————————————————

E. Upcoming Collaterals. 🏛️

Seneca positions itself in the #LSDfi and #LRTfi narratives, working to be at the forefront of the capital efficiency needs of DeFi users for emerging and high-performing $ETH staking and restaking derivatives.

The #Ethereum Chambers will expand with the addition of the Principal Tokens (@pendle_fi) of $ezETH (@renzoai) and $rswETH (@swellnetworkio).

Support will also be added for @redactedcartel's $apxETH, giving DeFi users the opportunity to borrow against the highest-performing #LSD in the market.

The #Arbitrum Chambers will expand with the widely demanded @pendle_fi PTs of $eETH and $rsETH, from @ether_fi and @KelpDAO respectively.

Last but not least, $sUSDe (@ethena) Chamber will be released on #Ethereum, marking support for the newest and most promising DeFi's yield-bearing stablecoin.

The release of those Chambers will coincide with the ramping up of $senUSD incentives and the beginning of Seneca's Expansion Phase.

—————————————————

Acquire $SEN to join Seneca as it cements itself as DeFi's Capital Efficiency Layer.

Turn on notifications to keep track of all upcoming deployments.

Exciting times lie ahead. 🏛️