Ethereum
Why Ethereum Network Linea Paused $1.2 Billion in User Funds – DL News
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general manager, Tim here.
Here’s what caught my attention about DeFi recently:
- Layer 2 Linea Takes a Break After $7M Velocore Feat.
- Vitalik Buterin looks back on the beginnings of Ethereum.
- Uniswap comes under fire after delaying vote on fee change.
Linea suspends blockchain
Layer 2 network Linea suspended transactions for an hour on Sunday after a protocol on the chain – Velocore – suffered a $7 million exploit.
In a wireLinea said it shut down the blockchain to protect users.
The Linea team has made the decision to stop block production by suspending the sequencer and censoring attacker addresses in order to protect users and builders in our ecosystem. Like the other L2s, we are still in the phase of existence of “training wheels”, which gives us guarantees to use.
-Linéa (@LineaBuild) June 2, 2024
Linea shares likely avoided further losses from this exploit.
But this decision calls into question the founding principles of the industry: immutability and user control.
Linea users, who have almost filled $1.2 billion on-chain, could not do anything with their assets while the blockchain was paused.
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The network suspended and censored the attacker’s wallet because it is still centrally controlled by its creator, Consensys.
Bitcoin and Ethereum are decentralized and require consensus from over 50% of their respective networks to do what Linea did.
The incident occurs while Linea Surge campaignwhich rewards users with points for linking assets to Layer 2.
Vitalik reflects on Ethereum
Ethereum co-founder Vitalik Buterin shared a list of things he would have done differently if he could go back to when the blockchain was created in 2014.
Many items on Buterin’s list were technical changes intended to make developers’ lives easier.
But one of them had a much broader impact: accelerating Ethereum’s abandonment of the energy-intensive proof-of-work validation mechanism.
“We could have saved a huge amount of trees if we had a much simpler proof of stake in 2018,” Buterin said.
Buterin lamented that it took until 2022 to move to proof-of-stake, suggesting that a “shittier” change earlier in the blockchain’s life would have been better.
The Cambridge Center for Alternative Finance estimates that Ethereum’s move from proof-of-work to proof-of-stake reduced network energy consumption by 99.9%.
If the change had taken place in 2018, as Buterin suggested, it could have saved more than 80 terawatt hours of electricity, the equivalent of Croatia’s annual energy consumption.
Uniswap called
A last-minute decision to delay Uniswap’s fee change vote has ruffled the feathers of the DeFi community.
“Over the past week, a stakeholder raised a new issue related to this work that requires additional diligence on our part for a full review,” Erin Koen, Head of Governance at the Uniswap Foundation, wrote Friday on the Uniswap DAO governance forum.
Koen did not specify the problem or the due diligence required.
That didn’t stop Dan Robinson, general partner at venture capital firm Paradigm, from accusing the Uniswap Foundation of bowing to pressure from another unnamed venture capitalist.
“It is disappointing to see a large venture capitalist attempt to bully the token governance process and delay community proposals at the last minute in order to advance their own pet projects,” he said. written the.
Robinson did not elaborate on his message and did not immediately return DL News” request for comment.
Uniswap fee change vote This has been happening for a long time.
The vote, which if successful would allocate a portion of Uniswap protocol revenue to UNI token holders, passed a non-binding “temperature check” vote earlier this year.
A binding blockchain-based vote was scheduled to begin Friday before being postponed.
Uniswap Foundation CEO Devin Walsh declined to comment when contacted by DL News.
Data of the week
Uniswap’s fee change vote could provide a steady stream of revenue for UNI token holders, if passed.
Data from DefiLlama shows that the leading decentralized exchange collected almost $1.8 million in fees in 24 hours. This represents some $649.7 million per year.
This week in DeFi governance
VOTE: Arbitrum DAO Supports Proposed Enhancement of Account Abstraction Wallets
PROPOSAL: Stargate Foundation changes LayerZero token allocation process
VOTE: Aave to Adjust Interest Rate Curve for weETH on Arbitrum and Base
Article of the week
The pseudonymous founder of crypto gaming studio, Loopify, sums up the current state of blockchain gaming with the timeless gold rush and shovels analogy.
What we watch
Thank you to everyone who contacted us following our publication, offering ideas, support and feedback.
As a result of these conversations, we have decided to abandon all trademark applications for the term “ZK”.
These discussions boiled down to one important fact: it would be impossible to…
– Matter Labs (n, ∆) (@the_matter_labs) June 2, 2024
Matter Labs, the company behind Ethereum layer 2 zkSync, has abandoned its trademark applications for the term “ZK” after backlash from the crypto community.
Do you have a tip on DeFi? Contact us at tim@dlnews.com.