In an interesting line of events, Ethereum-based DeFi project Indexed Finance recently faced and triumphed over a dual hijack attempt of the protocol DAO’s treasury. Following this development, the project’s founders will now re-assume control from the DAO. In a thread on X on Saturday, Laurence Day, a former executive at Indexed Finance, shared two failed hijack attempts targeted at the treasury of the project’s DAO, which is currently valued at  $120,000. According to Day, both attackers purchased a high amount of Indexed’s native token – NDX and attempted to assume control of the protocol’s treasury via malicious proposals. The first proposal, identified as Proposal 24, was without a heading or description. Being virtually unnoticeable, this proposal almost gained approval within an hour of voting.  However, upon detection, Day, alongside other community members, publicly rallied others to vote against the proposal and eventually thwarted the first hijack attempt. Related Reading: HTX Recommence Operations After Temporary Halt Due to Hack Indexed Finance Anticipates Second Attack, Emerges Victorious Again Considering the publicity and attention surrounding the incident, the Indexed DAO suspected another attacker might attempt to replicate the same tactics to gain access to its treasury. Therefore, the DAO passed proposal 26, identified as the poison pill, which granted them the authority to burn the assets in the treasury if considered as the only means of halting such an attack. As suspected, another hijacker attempted to take control of the treasury and even succeeded in getting the proposal passed – proposal 27. However, proposals on the Indexed Finance platform have to be queued for 48 hours before execution. During this time, the hijacker approached the DAO to cancel the poison pill proposals, and in return, he would take only a 50% bounty of the funds in the Treasury. However, he soon received a counter-offer from Indexed Co-founder Dillon Kellar, who offered him $10,000 DAI in exchange for canceling his proposal 27 or risk the DAO burning all the assets in the treasury. The hijacker eventually accepted Kellar’s proposal with 4 hours remaining for the execution of the poison pill proposal, marking the successful foiling of the second hijack attempt. Related Reading: Time For Self-Custody? Crypto Exchange Reveals Hackers Tried To Gain Access 159,000 Times Indexed Finance DAO Hands Over Treasury Control To Founders Following the multiple hijack attempts,  the Indexed Finance DAO has now ceded treasury control to Laurence Day as well as Kellar and an individual with the pseudonym PR0. Together, these three persons will manage the Treasury using a ⅔ multi-sig system.  At the time of writing, NDX trades at $0.00823, with a 24.15% decline on the last day. In tandem, the token’s daily trading volume is also down by 44.35% and valued at $2,347. Total crypto market valued at $1.398 trillion on the daily chart | Source: TOTAL chart on Tradingview.com Featured image from  Hacked.com,  chart from Tradingview

How Indexed Finance Foiled Two Treasury Hijack Attempts – Details


                    
                    In a thread on X, Laurence Day, a former core contributor, detailed the efforts of the Indexed community in overcoming two hijacking attempts on the remaining treasury of the Indexed DAO.
                    Indexed Finance, an Ethereum-based project that suffered a $16 million hack in 2021, has successfully thwarted two hijacking attempts. The project’s decentralized autonomous organization (DAO) control will be returned to its founders, aiming to allocate the remaining treasury to victims of the 2021 hack.In a thread on X, Laurence Day, a former core contributor, detailed the efforts of the Indexed community in overcoming two hijacking attempts on the remaining treasury of the Indexed DAO. Both attackers acquired significant amounts of the protocol’s NDX token, aiming to take control of the DAO’s approximately $120,000 digital asset holdings through malicious proposals.The initial proposal, lacking a title or description in an apparent effort to avoid detection, was thwarted as Day and fellow community members mobilized the Indexed DAO for votes against it. The attacker’s proposal neared approval within an hour, but sufficient 'no' votes were cast to prevent its passage.Okay so here's what just happened to the Indexed DAOThe wreckage can be seen in the Tally panel belowThis is a long thread, but I want to record it somewhere pic.twitter.com/wRTRZZcwhm— laurence, backed by paradigm (@functi0nZer0) November 25, 2023

Nonetheless, as the Indexed team had to openly coordinate votes against the proposal, Day anticipated the possibility of a copycat attack. Additionally, as Day detailed in his thread, an additional vulnerability could jeopardize funds beyond the DAO’s treasury if the DAO ends up in unfriendly control.To mitigate the threat of a subsequent attack, the Indexed DAO approved a 'poison pill' proposal, granting them the authority to burn the remaining treasury funds if deemed necessary to deter potential attackers.Related: Azuki DAO rebrands to ‘Bean’ as it drops lawsuit against founderUpon the anticipated second attack, the assailant initially sought to negotiate for 50% of the remaining treasury, as revealed in on-chain messages. Indexed founder Dillon Kellar responded by proposing $10,000 in DAI stablecoins which is issued by MakerDAO and warned of burning the entire treasury if the attacker refused.With only four hours left until Kellar’s ultimatum, and following an attempt to counter-negotiate for $17,000, the attacker accepted the original offer and withdrew their malicious proposal. Authority over the DAO will now return to a multisig controlled by Day, Kellar, and the pseudonymous co-founder PR0, with plans to compensate victims of the 2021 hack using the remaining treasury funds.Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines

Indexed Finance thwarts hijackers, set to compensate 2021 hack victims

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Blast, a brand new Ethereum Layer 2 network, has drawn a startling amount of interest and security concerns due to a surge of investors using the network to bridge their assets.  Blast Hits $123 Million In TVL Blast recently announced its mainnet access on X (formerly Twitter). The L2 network built by Pacman Blur has gained a staggering amount of attention from crypto investors following the declaration. “Introducing Blast: The only Ethereum L2 with native yield for ETH and stablecoins. We’ve raised $20m from Paradigm and StandardCrypto to build the L2 that helps you earn more,” Blast stated.  Related Reading: Global Banks Are Betting Big On XRP, Report Shows Blast recorded over 23,368 users in just 24 hours of announcing the imminent launch of its mainnet. The influx of investors pushed Blast’s Total Value Locked (TVL) to $81 million in a single day.  “23,368 users have joined the Blast Community in the past 24 hours. Thanks to them, Blast has reached $81 Million in TVL in one day! We’re excited to share more with community members soon. There’s much more to come,” Blast said.  Presently, Blast has recorded over $123 million in TVL from assets bridged by investors. This unexpected surge in bridging demands has raised concerns especially due to the unusual conditions attached to the bridging process.  Source: DeFiLlama According to Blast, users can only access the Ethereum L2 network after receiving an invitation code. The network has also stated that users will not be able to withdraw their bridged funds until February 2024.  While the unconventional bridging conditions have raised some red flags, many investors continue to express their interest by actively bridging their assets  Details About New Ethereum L2 Network Blast has outlined several important details of its bridging and staking processes. The Ethereum L2 network highlighted the potential yield benefits of investors when they bridge their ETH tokens and stablecoins. The network has also stated that investors who stake their ETH can gain profits over time as their assets grow in their Blast wallets.  “Once you have access, you can bridge to earn yield (4% for ETH + 5% for stablecoins) and Blast Points ahead of the Mainnet launch in February (2024). Early access members get more points based on how much they bridge and who they invite,” Blast stated. Related Reading: Ethereum Exchange Supply Drops To 5-Year Lows, What This Means For Price The L2 network added: Specifically, Blast natively participates in ETH staking, and the staking yield is passed back to the L2’s users and dapps. We’ve redesigned the L2 from the ground up so that if you have 1 ETH in your wallet on Blast, over time it grows to 1.04, 1.08, 1.12 ETH automatically. Additionally, Blast has expanded its bridging capabilities to a diverse range of digital assets. According to the L2 network, investors can bridge beyond ETH and opt for stablecoins such as USDT, DAI, and more.  “It’s not just ETH on Blast that earns yield. Stablecoins do too. When you bridge stablecoins like USDC, USDT, and DAI to Blast, it’s deposited in on-chain T-Bill protocols like MakerDAO, and the yield is passed back to Blast users via USDB, Blast’s auto-rebasing stablecoin,” Blast stated. ETH price regains support above $2,000 | Source: ETHUSD on Tradingview.com Featured image from Metaverse Post, chart from Tradingview.com

Ethereum L2 Blast Crosses $123 Million, Important Things To Know Before You Bridge In

Source: Unsplash Money is flowing into the crypto market through stablecoins, marking the first positive supply growth in over a year.  According to blockchain analytics firm Glassnode, the 90-day net change in the supply of the top four stablecoins, Tether ( USDT), USD Coin ( USDC), Binance USD (BUSD), and Dai (DAI), has turned noticeably positive, […]
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Stablecoins See Positive Supply Growth For First Time in More Than a Year: Glassnode Data

While US Treasuries fall from the peak of 5%, yields are back in defi with DAI now offering 10% in Aave, while the USDc coin has spiked above 20%.