TreasureDAO Announces MagicSwap V2

Wednesday, January 25, 2023

Quick Take

  • TreasureDAO announces MagicSwap v2.
  • Cap Finance releases v4 to public beta
  • Kevin Rose suffers an NFT phishing attack.
  • Exponential DeFi warns users about admin controls over Frax Ether.

TreasureDAO Announces MagicSwap V2

TreasureDAO announced MagicSwap v2, an upgrade to its AMM that will feature compatibility for ERC-20, ERC-721, and ERC-1155 tokens in a single router. The AMM protocol will also feature automated royalties for NFT pools. TreasureDAO will launch MagicSwap v2 in Q2 2023. It will also deploy on Arbitrum Nova at a later date.

TreasureDAO plans to incorporate MagicSwap directly into Trove, the platform’s native NFT marketplace. MagicSwap first launched in August 2022 as a gateway for the cross-game economy. MagicSwap currently supports swaps and liquidity pools for $MAGIC and $gFLY tokens. $MAGIC serves as the AMM’s governance and fee token.

Kevin Rose Suffers NFT Phishing Attack

Kevin Rose, the co-founder of PROOF Collective, was phished out of more than $1 million worth of NFTs. Rose was phished into approving a malicious signature that created a bundled private listing on the official Seaport contract. The attacker then set a price of 0 ETH for the bundle and drained the NFTs in a single transaction.

Seaport is the underlying protocol used by OpenSea to enable the buying and selling of NFTs. Since the token approvals were already active on the wallet, it only took a single gasless signature to execute the attack. Notably, a rare CryptoPunk was not drained since OpenSea does not support sales on the CryptoPunk collection.

Cap Finance V4 Public Beta Release

CAP Finance released its v4 upgrade to public beta, which features low-fee and slippage-free trades. The beta release supports over 20 markets inclusive of crypto, forex, indices, and metals. It also features isolated collateral, which allows traders to use any token in a pair as collateral. Profit is paid in the same collateral asset.

CAP uses the oracle platform Pyth Network for price data. A network of Keepers competes to execute user orders and earn 5% of trading fees for each successfully executed order. Each order is signed and verified with a Pyth Network price. Prices are also bound to Chainlink prices for extra security. CAP V4 has not yet been audited.

Exponential DeFi Rates Frax Ether

Exponential DeFi, a platform for discovering DeFi yield opportunities, added a “watch out” risk rating for Frax Ether, a soft-pegged token to ETH. Exponential DeFi says that the frxETH admin, a 3/5 multi-sig managed by the Frax Finance team, holds unlimited mint access in the contract.

The Frax team plans to make changes after the Shanghai upgrade. frxETH is also used to maximize staking yield for the protocol’s sfrxETH liquid staking token, which currently yields the highest staking APR. sfrxETH yield is subsidized as Frax Finance uses its CRV and CVX holdings to vote for Curve emissions on frxETH pools.

Euler Finance Q4 2022 Report

Crypto research firm Messari released a Q4 2022 report for Euler Finance, which was requested by EulerDAO. The report notes that more than 90% of Euler-supplied assets are in stablecoins and ETH derivatives. The report also states that Euler offers cheaper liquidations for large borrowers compared to other platforms. Euler is also working on a native AMM called Eulerswap.