Hi Geckos!

"Fool me twice, shame on me"

In less than 24 hours after the first attack on Balancer's Pool - draining an excess of $450k in crypto from the automated liquidity pool balancer, a second (and third) attack is seen on the same platform.

In other news on the "crypto-bad, hacker-use-it" channel, The University of California at San Francisco School of Medicine reportedly paid a 116.4 Bitcoin ransom in a ransomware attack back in June 1st.

If that is bad enough news, Did the SEC just asked Telegram (a non-US company) to pay $18.5 Million (in USD, of course) as a "civil penalty". This is on top of the massive $1.19 Billion USD that Telegram had to pay back to their investors within 4 years time. Yikes!!

Today's newsletter will touch on the Balancer attack (feat. flashloans), two new ways of collateralizing your DAI loans, and Balancer refunding the losses to users.

Read On!

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Ethereum (+1.8%)
Compound (-5.7%)
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Reserve Rights Token (+3.0%)
Balancer (-8.9%)
Aleph.im (27.5%)
DMM Governance Token (+35.0%)

Hacker Steals from Balancer in Second Attack Within 24 Hours

Less than 24 hours after Balancer's first attack, a second attack claimed about $2,300 worth of COMP.

Using Flashloans on dYdX and Uniswap, the attacker loaned more than $33 million that was used to generate cTokens and deposit them into Balancer.

With the deposit, Balancer was fooled into thinking he was owed a significant portion of the COMP tokens stored in Balancer's pool.

The attacker then withdraws the COMP to complete the attack.

(Editors: Double Ouch!!)

CoinTelegraph

Balancer to Refunding all $450,000 of Lost Funds

Balancer has announced that it will compensate users who lost their tokens in the protocol attack.

They will also reward Ankur Agrawal of Hex Capital, "the maximum amount" available in its current bug bounty program for first flagging the vulnerability.

Previously, Balancer had declined to pay out a bug bounty because "they determined that it was not a critical bug"

TheBlockCrypto

KNC and ZRX added as MakerDAO's DAI collateral

Kyber's KNC and 0x's ZRX have been added as collateral options on Maker's DAI loan platform.

The addition of Kyber's KNC and 0x's ZRX comes after four days of voting on the measure.

The two tokens now joins ETH, BAT, WBTC, USDC and TUSD as collateral assets for borrowing DAI.

(Editor: When can I tokenize my house as DAI collateral?)

Decrypt

Arbitrage

A practice of taking advantage of differences in price of the same commodity in two or more markets or exchanges. For example, cryptocurrency prices on Korean exchanges can be different from those on US exchanges. An arbitrage trader would be in both markets in order to buy in one and sell in another for profit.

Learn more terms with the CoinGecko Glossary