Hey, I'm here again!
Yes, the crazy dude who writes stuff on the internet!
I know I repeat myself and for that reason, maybe this content is not for you, so don't forget to give me a tip when you leave and thanks for the visit!
Today I come "with the knife between my teeth" (it's a Spanish expression that I don't know if it's used in English) because I keep surprising myself every day even though it shouldn't be like that anymore.
This week has been an enlightening ray for the world of cryptocurrencies as well as an economic disaster. The aforementioned fall of the Terra ecosystem puts us on alert about the reality of the security of practically the entire Blockchain universe.
It entails the fall of the project itself (before the attack it had a market capitalization of about 30,000M) and also collateral damage such as the delisting of the LUNA/USDT pair on Binance, the losses of about 11.2M from the DeFi Venus protocol and also at Blizz Finance.
In the case of Terra, it remains to be seen what really happened since there was a rumor that Gemini (as a BTC lender) and Blackrock and Citadel participated in the lack of liquidity of LUNA.
In the case of Binance's delisting of the LUNA-linked pair, it is something that everyone knew would be the case but no one expected it to be. Upon reaching a value less than 0.05 (a coin that should be worth 1) it was agreed that this would be the case.
The case of the two DeFi protocols (Venus protocol and Blizz finance) is the one that confuses things even more. These platforms ran out of price feeds at one point in the crash because Chainlink paused the LUNA oracle. At that time the price of LUNA on its platforms was 0.107 while it actually fell to 0.01. Yes, someone noticed and deposited millions of LUNA to "borrow all the collateral".
On the subject of Venus protocol we can rest easy because they have already announced that they will cover with their risk fund. Now, the basic issue, the one that matters to us (does it only matter to me?) is security. From both protocols Chainlink is accused of causing them losses by pausing the oracle but comments have emerged among the community that clearly exculpate Chainlink and accuse both protocols of being negligent.I'll quote verbatim from @TheSoftwareJedi's tweet:
This is something serious since for a person who starts in the world of cryptocurrencies and sees this chaos after reading an interview with Warren Buffet, what is left is to turn around and run.
Do not forget to follow all my advice if you want to lose your wife because you have put the rent money in "coins that are worth cents but can be worth thousands of dollars"
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