KyberSwap recovers $4.7 million after exploit

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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• KyberSwap recovers $4.7 million after exploit.

• Terra ecosystem's LUNA, LUNC surge by double-digits.

• The average value of undeclared crypto in Japan dropped 19% in 2022.

• UK Regulator welcomes fund tokenization plan.

• Dictionomics: Terra Defi

Global Biscuits

KyberSwap recovers $4.7 million after exploit.
KyberSwap, a decentralized exchange protocol, has successfully recovered $4.67 million in funds after a recent security attack that resulted in a loss of $47 million from its concentrated liquidity pools. The recovery involved negotiations with the operators of front-running bots, who agreed to return 90% of the funds they had taken in exchange for a specified KyberSwap address on the Polygon network, along with a 10% bounty as an incentive. The recovery process is distinct from negotiations with the main hacker, whose willingness to negotiate has been indicated, but the process has not yet progressed. The attack exploited a vulnerability in KyberSwap's concentrated liquidity pools related to tick interval boundaries.

Terra ecosystem's LUNA, LUNC surge by double-digits.
Coins in the Terra ecosystem, LUNA and Terra Luna Classic (LUNC) have experienced significant price surges following a $15 million injection into the Terra DeFi ecosystem by Terraform Labs. LUNA is up 19.1%, trading at approximately $0.83, while LUNC has seen a substantial 39.6% increase in the past 24 hours, reaching $0.00011267. Terraform Labs deployed the liquidity across 11 LUNA pools on decentralized exchanges Astroport and Ura, addressing what it termed the "cold start problem" for the Terra ecosystem. The reasons for LUNC's price movement are less clear. The Terra ecosystem faced a collapse in May 2022 after its algorithmic stablecoin, TerraUSD, lost its peg to the dollar.

Tastes of the regions

The average value of undeclared crypto in Japan dropped 19% in 2022.
Japan's National Tax Agency (NTA) has reported that the average value of undeclared income in cryptocurrency decreased by 19% in 2022. The NTA conducted 615 investigations into citizens' crypto holdings based on their tax declarations for 2022, up from 444 in 2021. Out of these, 548 cases were found to have tax violations, representing a 35% increase from the 405 cases in 2021. Despite the rise in investigations, the average value of undeclared crypto holdings dropped from 36,590,000 Japanese yen (around $245,000) in 2021 to 30,770,000 yen ($206,000) in 2022.

UK Regulator welcomes fund tokenization plan.
A report from the U.K.'s Technology Working Group, which was set up by the Economic Secretary to the Treasury’s Asset Management Taskforce, has outlined plans for implementing the tokenization of funds. The report emphasizes that firms looking to provide tokenized funds should ensure they are authorized by U.K. regulators, hold traditional assets, and be interoperable with future technology. Tokenized funds involve the issuance of tokens representing investors' interests in a fund, traded and recorded on distributed ledger technology. The Financial Conduct Authority (FCA) is an observer of the group and has expressed support for the initiative.

Dictionomics: Terra Defi

Terra is a programmable blockchain and payments-based financial ecosystem with a unique suite of DeFi protocols. Terra is interoperable with some of the biggest blockchain ecosystems in crypto, such as Cosmos and Ethereum. The total value locked across DeFi protocols on Terra is more than $8.65 billion as of October 2021. Some of the popular applications built on Terra include Anchor, Mirror, Chai, and Astroport.

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