Editor's Note: This article comes fromChain News ChainNews (ID: chainnewscom), Written by LeftOfCenter, published with permission.
Editor's Note: This article comes fromChain News ChainNews (ID: chainnewscom)Chain News ChainNews (ID: chainnewscom)
The fixed-interest encrypted lending protocol 88mph, which has just started liquidity mining for two days, was shut down urgently due to contract loopholes. Fortunately, the project team responded quickly and transferred the funds safely, and completed the loophole repair in less than 24 hours , and declarehereThe second round of liquidity mining will be restarted at 4 am on November 21, Beijing time
Quite dramatically, since the team froze the $100,000 worth of assets placed by the attacker in the MPH bond contract and decided to distribute these additional earnings to liquidity providers, this attack not only did not cause users to suffer losses , On the contrary, the first batch of participants received an unexpected "reward". At present, the application interface has been launched, and 88mph liquidity providers can
here
Claim ETH.
In this head-to-head confrontation with hackers, the 88mph development team effectively protected the property safety of users through timely responses, and completed the bug fixes in a short period of time, which has won word of mouth for the project. However, this security incident once again sounded the alarm for the market. High-profit DeFi games also breed high risks. Even experienced developers and contracts that have passed the audit cannot guarantee 100% security.
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The story of the 88mph attack
On November 16, the fixed-interest encrypted lending protocol 88mph launched liquidity mining.
Just two days after the liquidity mining started, an attacker used MPHMinter's contract loopholes to try to steal all the ETH in the Uniswap liquidity pool, but was discovered by the famous white hat samczsun and notified the project party.
It is worth mentioning that,The developer immediately suspended liquidity mining, moved funds from the ETH/MPH pool to the governance multisig wallet to keep funds safe, and permanently fixed the bug in less than 24 hours.At the same time, since the development team froze the assets worth $100,000 placed by the attacker in the MPH bond contract and decided to distribute these additional proceeds to liquidity providers, the ETH airdropped to liquidity providers this time Including the principal and part of the attacker's ETH. In other words, this time the attack on the user's property not only caused no loss, but also made a small profit.WhalerDAOAs of now, 88mph has announced that it will restart the second round of liquidity mining at 4 am on November 21, Beijing time. The newly launched liquidity mining will also last for 14 days and will distribute 88,000 MPH tokens to participating users.
It is worth mentioning that,88mph developer Zefram LouSolid background, involved in the core development of multiple blockchain applications including Betoken, good at Ethereum dApp development, proficient in Python, Java, and Web and iOS development, keen on blockchain, machine learning, virtual/enhanced/ Mixed reality, etc., involved in projects including anti-whale DAO organization
, non-destructive donation agreement PoolDAI and DAO platform Fantastic12.
In fact, 88mph has already passed Quantstamp's safety audit earlier. according to
Security Audit Report from Quantstamp
In this security audit, Quantstamp found a total of 16 issues, including 2 high-risk issues (resolved), 1 medium-risk issue (resolved), 8 low-risk issues (resolved), information risk There are 3 issues (solved).
It can be seen that only the deposit and bond smart contracts passed the security audit of Quantstamp, and the attack was caused by the MPHMinter contract vulnerability.
This reminds us once again that when participating in high-return DeFi mining strategy games, security should be considered the top priority. Even if the team has rich development experience and the contract has passed the audit, it cannot guarantee 100% security.
However, excluding the safety risks, this project named "88mph" still has something remarkable. The following briefly introduces the uniqueness of 88mph, its realization principle, unique economic model, and the project without safety risks. Is it worth participating in liquidity mining?
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That is to say, if you deposit 100 DAI at 88mph with a fixed annualized APY of 10%, the storage period is 1 year, and after 1 year expires, you can get 110 DAI.
Realization principle
How does 88mph manage to always provide a fixed rate of return for such a volatile cryptoasset? Does 88mph always guarantee acceptance of fixed rate interest for depositors? Is there a risk?
Understanding these issues requires understanding how 88mph works.
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Realization principle
In fact, when users deposit encrypted assets (USDC/UNI/yCRV/crvSBTC), 88mph will invest these funds in various DeFi income agreements such as Compound, Aave, and yEarn to earn floating income, thereby providing storage users with fixed Interest provides a source of funding.
You may ask, the interest of these DeFi income agreements is floating, what if the income generated is less than the fixed interest payable to storage users?
88mph solves this problem by aggregating all deposits in one pool, which means that 88mph will put all stored funds into a separate pool from which users can withdraw deposits once the deposit period is over.
What are the benefits of putting all deposit funds into a separate pool?
The first benefit is to balance the risks. Since there are many different protocol tokens in the pool, when the floating rate APY of one protocol falls, it is possible that the floating rate APY of another protocol is rising. This will be offset by gains from rising APY. Thereby reducing the risk of bankruptcy and improving the stability of interest rates of various encrypted assets in the 88mph system.
A secondary benefit is maintaining solvency at 88mph. The maturity dates of the various deposits in a pool overlap, that is, when a deposit with an earlier maturity has a deficit in income, another deposit with a later maturity can be used to pay the former’s income difference. While this by itself does not directly solve the debt problem, the combination of risk balance and the volatility of floating rates helps to maintain solvency at 88mph.
To this end, 88mph also provides a mechanism "floating rate bonds". Floating-rate bonds are purchased to cover liabilities incurred on one or more deposits in the pool, and in exchange, bond buyers receive the proceeds generated by those deposits.
For example, if Kevin's one-year deposit interest generation is insufficient, resulting in a 5 token interest debt deficit (5% fixed rate) at 88mph, at this time Chad buys a floating rate bond on that debt and fills the gap a debt.
At this time, the risk return that Chad can obtain is the floating rate return generated by these 105 tokens. Since the 88mph fixed rate gain is equal to 75% of the initial floating rate, Chad will always make a profit as long as the average floating rate does not fall by more than 25% during the lifetime of Kevin's deposit, and if the floating rate rises, his profit will be increase. Chad is essentially long the floating rate.
Of course, in order to ensure the security of the system and encourage the purchase of "floating rate bonds", 88mph also adopted the MPH token reward plan, that is, buying "floating rate bonds" to earn MPH tokens.
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What are MPH Tokens used for?
88mph's core business is to provide fixed-interest encrypted lending services, allowing users to lend a variety of encrypted assets to obtain stable interest income, which is calculated based on the floating interest of the token at the time of deposit (75%), It satisfies the needs of DeFi users who want to seek stable annualized income. On the other hand, "floating rate bonds" provide a certain degree of insurance mechanism to provide a more stable security guarantee for the system. In fact, compared with providing risk Layering allows users with higher risk preferences to have the opportunity to obtain higher returns while bearing certain risks.
The above two functions are the key points for 88mph to generate long-term value, that is to say, the more its core business is used, the greater the value will be, thus creating a positive cycle based on the entire ecosystem.
In order to encourage more people to use these core businesses, 88mph launched this liquidity mining plan (initial token distribution), as long as the two core businesses of the platform (time deposits with fixed interest and purchase of floating rate bonds) are used, you can Obtain MPH token rewards, fixed deposits are rewarded with MPH tokens based on the proportion of interest income generated by deposits, and floating rate bond purchases are rewarded based on the proportion of the purchase amount.
In other words, before the deposit business expires, you can use these rewarded MPH tokens to do various operations to earn income. For example, you can participate in liquidity mining activities to get more token rewards. According to the plan, liquidity providers can provide liquidity for the MPH/ETH trading pair on Uniswap, and at the same time stake the LP token of the trading pair on 88mph to earn MPH token rewards, within 14 days of the mining validity period , 88mph gives out a total of 88,000 MPH, with a daily distribution of about 6285 MPH.
Further reading:Panoramic interpretation of the next encryption investment boom NFT
In addition, 88mph uses NFT as a user's deposit and purchase certificate. Every deposit and purchase of bonds will generate an NFT certificate, and the holder has the authority to withdraw the principal and obtain interest. The composability of Ethereum endows the NFT with unlimited possibilities. For example, the NFT can be used as collateral for loans on loan platforms such as RocketNFT, and the loan can be repaid after the deposit matures.
Further reading:
Panoramic interpretation of the next encryption investment boom NFTIt is foreseeable that after a round of liquidity mining is over, basically most of the MPH tokens obtained from mining will flow into the governance fund. At this time, the purchase of floating-rate bonds will no longer be rewarded with MPH tokens, but only for deposit function rewards. Then the next round of 14-day liquidity mining will be restarted.secondary title
Team, Governance and Product Roadmap
Aave's second round of ecological funding plan
governance
A project in , and has passed the Quantstamp security audit.
As one of the Aave ecological funding plans, 88mph supports Aave first, but only supports one of the token assets, aUSDC. The supported token assets include cUSDC, cUNI, yUSD and ycrvSBTC. The team indicated that more assets from Aave V2 and Curve will be integrated.
Additionally, 88mph plans to launch a smarter fixed rate APY strategy. In addition, 88mph plans to develop more NFT application potential, to integrate deposit NFT as an asset certificate into more Opensea or Rarible for sale, to borrow more assets on Nftfi mortgage, etc.
governance
Like most mining projects, 88mph encourages users to obtain governance token rewards after performing core operations. The difference is that 88mph token rewards have a time limit, which is only valid during the business period, but after expiration, you have to Return 90% of the tokens to the Governance treasury (address 0x56f34826Cc63151f74FA8f701E4f73C5EAae52AD). 88mph plans to integrate Snapshot to activate community governance, integrate protocol parameters into the governance module, and MPH holders will have voting rights to decide how to dispose of these funds.
In other words, after each user operation, only 10% of the tokens are actually obtained. If you want to get 100% of the tokens, you have to spend additional money to buy back 90%, or spend more (10 times) to mine Mine, take back the tokens, and have a greater proportion of governance rights. The result of this design mechanism is that users either perform more operations or spend more money to buy tokens in order to obtain voting tokens with a greater proportion of governance authority.
In the 88mph ecosystem, MPH tokens are endowed with governance functions, holding MPH tokens can vote on various community proposals, including but not limited to protocol parameter changes, the return ratio of MPH tokens (currently 90%), new incentive mechanisms , capital efficiency strategies and growth. In addition, MPH tokens are also endowed with various interest-generating functions, whether it is pledge interest (reward DAI) or provide liquidity interest (reward MPH token), you can get more income.
