Gryphsis Cryptocurrency Weekly Report: Hardware wallet Ledger was hacked for $484,000 due to security breach
Welcome, dear reader, to Gryphsis Academy’s weekly cryptocurrency digest. We bring you key market trends, in-depth insights on emerging protocols, and new industry dynamics, all designed to enhance your expertise on cryptocurrency and Web3. Happy reading! Follow ourTwitterandMediumGet deeper research and insights.
Market and Industry Snapshot:
Layer 2 Overview：
Last week, Layer 2 saw a large change. Except for Base and Starknet, which increased by 18.99% and 10.59% respectively, the rest showed negative growth. Protocols like Poolshark, ApeX Protocol, Seamless Protocol, and SyncYield have demonstrated noteworthy TVL growth rates.
LSD Sector Overview：
In the LSD field, the amount of Ethereum pledges and deposits has remained basically unchanged, but the total withdrawal volume has increased significantly. In terms of market share, most blue-chip LSDs have all declined, with wstETH having the most significant decline this week at 14.66%.
RWA Sector Overview：
Last week, the worlds real assets rose significantly overall, with market value increasing by 36.43%, 24-hour trading volume increasing by 43.42%, and the overall industry share increasing to 0.12%. RWA tokenized treasury and tokenized U.S. Treasury bond values performed flat. Notable growth tokens include $CTC, $STBU, and $DEXTF. Tokens like $TIA, $ELAND, and $FACTR experienced larger losses.
Main Topics
Macro overview:
US Stock V.S. Crypto
Big news this week:
Ledger Hardware Wallet Hacked Due to Security Flaw
Weekly Agreement Recommendations:
Kujira
Weekly VC Investment Focus
Liquidium($ 1.25 M)
NodeKit($ 1.2 M)
Dynamic($ 13.5 M)
Twitter Alpha:
@DamiDefi on BRC 20
@ViktorDefi on RWA
@hmalviya 9 on BRCFi
@zerokn 0 wledge_ on Arbitrum
@0x AndrewMoh on LST
Macro overview
This week, the trend went in the opposite direction at the stock market level and the crypto industry, with the SPX and NASDAQ gaining 2.49% and 2.85% respectively. In the week ahead, watch for key events such as CPI, building permits, CB Consumer Confidence Index and core durable goods orders.
Big news this week
Ledger hardware wallet hacked for $484,000 due to security vulnerability
Hackers inserted malicious code into the Github repository of Connect Kit maintained by crypto wallet company Ledger. Ledger’s Connect Kit is a piece of code that allows DeFi protocols to connect to crypto hardware wallets. The vulnerability potentially affects the front-ends of all protocols using Connect Kit, with several major Defi protocols using the library affected, including Sushi, Lido, Metamask, and Coinbase, among others.
Several Ethereum-based applications including Zapper, SushiSwap, Phantom, Balancer, and Revoke were compromised due to the Ledger security flaw. Paris-based crypto hardware wallet maker Ledger said it had fixed the malicious code at 13:35 UTC, and the company also warned users to clearly sign transactions to ensure they were interacting directly with the companys website and software. Its unclear how many dapps were affected, or how much money was lost. Scattered reports on social media suggest the vulnerability is widespread.
“Please do not interact with any dApps until further notice,” Sushi CTO Matthew Lilley, one of the first to acknowledge the attack, wrote on Twitter. It appears that a commonly used Web3 connector has been compromised, allowing malicious code to be injected affecting many dApps, he said.
While Ledger has updated its code, Ido Ben-Natan, CEO of blockchain security firm Blockaid, told CoinDesk in a Telegram message that many websites are still affected and users are hit. To completely eliminate the risk, every protocol using the Ledger Connect Kit must manually update its version of the library. Meanwhile, several protocols remain at risk, notably revoke.cash, a service used to remove permissions from DeFi protocols.
Hacks are common in the cryptocurrency space, especially in the DeFi world, where financial software is often deployed without proper auditing and testing, and used by people who lack the knowledge to do proper due diligence. Centralized entities such as Ledger are also common targets.
https://www.coindesk.com/consensus-magazine/2023/12/14/what-we-know-about-the-massive-ledger-hack/
Weekly Agreement Recommendations
Welcome to our Protocols of the Week segment – where we spotlight protocols making waves in the crypto space. This week, we chose Kujira, a Layer 1 financial public chain on Cosmos that focuses on transactions and returns.
Kujira initially launched the ORCA protocol on Terra, focusing on the collateral liquidation protocol, allowing users to purchase low-priced liquidation orders. After the collapse of Terra, Kujira turned to a financial public chain developed using the Cosmos SDK and developed a series of local service products:
Orca: Collateral clearing protocol, clearing various mortgage tokens in the Cosmos ecosystem.
FIN: DEX in order book mode.
Bow: An automated market maker that allows users to profit from providing liquidity.
Ghost: Money market, providing lending services.
Pilot: A Launchpad platform built in partnership between Kujira and Fuzion, it uses an Orca-based bidding process to enable everyone to participate equally.
Blue: One of the core infrastructure, which can be used to manage tokens, pledge, vote, and exchange.
These Defi suite services such as clearing, lending, staking, wallets, etc. serve as infrastructure that can help any protocol that wants to use Kujira to launch its own products to provide a certain amount of liquidity and achieve composability. Since then, Kujira has been committed to providing sovereign blockchains with financial solutions for Web3 developers, protocols, and users. In addition, the current Kujira ecosystem has 25 protocols, 75 validators, 5 community tools, and has completed product integration with 21 other protocols.
The total supply of Kujira’s native token $KUJI is capped at 122.4M and there is no inflation mechanism. The tokens are used to pay network fees, dapp fees, staking and governance. The network fees will be distributed to token holders; users who pledge tokens through the validator will receive a basket of asset fees returned by the network. Staking users will receive a variety of tokens, and the network will not directly transfer these assets. Exchange it into $KUJI, which diversifies the users assets.
Rewards for staking $KUJI in Leap
Kujira will launch BFIT, Sonar wallet, DLOYAL, Merch Store, domain name services, etc. in the future Roadmap, and will continue to expand services to help more products be deployed quickly.
our insights
Kujira has developed rapidly this year. The TVL at the beginning of 2023 was only 3M, and as of the time of writing, it has reached 120.5M, an increase of nearly 40 times. Compared with its competitors Frax and Injective, its TVL ranks second, about 10 times different from Frax, but its market capitalization and FDV are not much different, but its 24-hour trading volume exceeds Frax.
In terms of product updates, Kujira has launched a test version of Sonar Wallet and added its service suite; launched Pancake $KUJI-$BNB liquidity pool; launched Helix DEX on Injective; OPNX launched $KUJI’s perpetual trading; supports $RIO-$USK Liquidity Pool...
It is worth noting that on November 25 this year, Kujira announced the completion of integration with Wormhole and the introduction of $SOL assets among the first batch. This cooperation also means that Kujira’s products and services will be able to access 30+ mainstream blockchains supported by Wormhole. , thereby significantly expanding its usability and user base. Relatively speaking, Kujis recent actions are obvious. Whether it is liquidity expansion or product updates, there are clear positive expectations.
And since Kujira is a mortgage-based network, all Dapps in the Kujira ecosystem can share this set of liquidity and pledge tokens to protect the network. Not only can they interact in various Dapps to obtain multiple asset rewards. And because Kujira is built on the Cosmos network, it can interact with other Cosmos ecological projects through the IBC protocol, greatly expanding the interaction scenarios.
Source: Mapofzones
Overall, Kujira currently has very rich infrastructure and has laid a stable foundation. Whether it is cross-chain interoperability or staking, governance and other functions, it has laid the foundation for the prosperity of the ecosystem. Although its competitors Frax and Injective are also developing their own Defi service suites, Kujira is more powerful and has its own advantages in terms of width and depth.
https://www.panewslab.com/zh/articledetails/8847uif5.html
Gryphsis Research Focus
Welcome to this week’s Gryphsis Research Spotlight, where we share the latest insights from our team. Our dedicated research team continues to explore the most cutting-edge trends, developments and breakthroughs in the crypto space. This week, we’re excited to share our newly released report, so let’s dive in!
TL;DR:
The commercial application of generative AI will be popular all over the world in 2022, but as the novelty wears off, some current problems of generative AI have gradually emerged. The increasingly mature Web3 field, relying on the fully transparent, verifiable and decentralized characteristics of blockchain, provides new ideas for solving generative AI problems.
Generative AI is an emerging technology in recent years. It is developed based on the neural network framework of deep learning. The diffusion model used for image generation and the large language model used for ChatGPT have shown great commercial potential.
The implementation architecture of generative AI in Web3 includes infrastructure, models, applications and data. The data part is particularly important when combined with Web3 and has huge room for development, especially on-chain data models, AI agent projects and vertical field applications. It has the potential to become a key development direction in the future.
Currently, the popular projects in the AI track in Web3 on the market all show insufficient fundamentals and weak token value capture capabilities. In the future, we mainly look forward to new popularity or updates to the token economy.
Generative AI has huge potential in the Web3 field, and there are many new narratives that are combined with other software and hardware technologies in the future that are worth looking forward to.
Full report:https://link.medium.com/9IWPsgisBFb
Weekly VC Investment Focus
Welcome to our weekly Investing Spotlight, where we reveal the biggest venture capital developments in the crypto space. Each week, we’ll spotlight the protocols that received the most funding.
Liquidium
Liquidium is a peer-to-peer lending solution that leverages the power of Discrete Log Contracts (DLC) and Partially Signed Bitcoin Transactions (PSBT) to enable users to borrow and lend native Bitcoin using native sequence numbers as collateral. Ordinal inscriptions are a new form of digital asset created by inscribing data on Satoshis, the smallest unit of Bitcoin.
https://x.com/LiquidiumFi/status/1734146133499240849?s=20
NodeKit
NodeKit has raised a $1.2M seed round on Avalanche-based platform SEQ, a layer 1 subnet designed to enable high-performance rolling chains. SEQ will operate as an independent blockchain or a subnet within the Avalanche ecosystem, support most existing rolling chains, and will have cross-chain interoperability. SEQ’s testnet is scheduled to launch in 2024, with the mainnet launching later.
https://x.com/nodekitorg/status/1734955629591322985?s=20
Dynamic
Dynamic is a multi-chain wallet-based authentication and authorization platform that enables developers to leverage wallet-based interactions in minutes. Using Dynamic, developers can install a simple SDK in less than a minute and manage all authentication, onboarding, and authorization functionality from the developer dashboard. Developers can add additional chains with a click, handle their users, create complex onboarding processes, use Chainalysis to block OFAC and risky wallets, and more without writing code.
https://x.com/dynamic_xyz/status/1734959297002611007?s=20
protocol event
Synthetix to end SNX token inflation, shift focus to buybacks and burns
Aptos unlocks nearly 25 million APT tokens, worth over $ 200 million
SSV Ethereum staking network launches permissionless mainnet
Celestia to integrate data availability layer with Polygon CDK
Worldcoin unveils integrations with Minecraft, Reddit, Telegram and Shopify
Industry updates
KuCoin settles with New York for $ 22 million and agrees to block users from state: Reuters
CFTC votes to propose rule that would bolster customer protections in wake of FTX collapse
FASB publishes new crypto rules that will let firms use fair-value accounting
Swarm launches permissionless trading platform for tokenized real-world assets
IRS counts down biggest crypto fraud schemes of the year
Twitter Alpha
Theres a lot of alpha in crypto Twitter, but navigating thousands of Twitter threads can be difficult. Each week, we spend hours doing research, curating threads full of insight, and curating your weekly picks list. Let’s dive in!
https://x.com/DamiDefi/status/1733862410375586288?s=20
https://x.com/ViktorDefi/status/1733518275181728092?s=20
https://twitter.com/hmalviya9/status/1735247343937798517?s=19
https://twitter.com/zerokn0wledge_/status/1735146656478396419?s=19
https://twitter.com/0x AndrewMoh/status/1735134758492119110? s= 19
next week events
news source:
https://www.theblockbeats.info/news/47438
https://www.theblock.co/post/267532/cftc-votes-to-propose-rule-that-would-bolster-customer-protections-in-wake-of-ftx-collapse
https://www.theblock.co/post/267447/fasb-publishes-new-crypto-rules-that-will-let-firms-use-fair-value-accounting
https://www.theblock.co/post/267229/swarm-launches-permissionless-trading-platform-for-tokenized-real-world-assets
https://www.theblock.co/post/267293/irs-counts-down-biggest-crypto-fraud-schemes-of-the-year
That’s all for this week. Thank you for reading this weeks newsletter. We hope you benefit from our insights and observations.
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This weekly report is provided for informational purposes only. It should not be relied upon as investment advice. You should conduct your own research and consult independent financial, tax or legal advisors before making any investment decisions. And the past performance of any asset is not indicative of future results.
