Bits + Bips: How the Kelp rsETH Hack Left Aave With $193M in Bad Debt
Luke Leasure and Shaunda Devens of Blockworks Research explain how three compounding failures, Kelp's one-of-one bridge signer, Layer Zero's permissive default settings, and Aave's failure to flag it as a collateral risk, set up the conditions for the exploit.
Shaunda Devens then breaks down the monolithic pool design that concentrated risk, showing how 98% of rsETH collateral was backing a single leverage looping strategy.
This clip is from a longer conversation on the Kelp rsETH hack and its implications for DeFi. Full episode here: https://youtube.com/live/hJ9X_btsvD0
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Introducing The Token Transparency Framework With Dan Smith, Louis T and Felipe Montealegre
On this episode, Yano is joined by Dan Smith of Blockworks Research, Felipe Montealegre of Theia Research and Louis T of L1D to publicly launch a brand new, industry leading Token Transparency Framework that will move the entire industry forward!
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Learn more here - https://blockworks.co/token-transparency
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Start your day with crypto news, analysis and data from Katherine Ross.
Subscribe to the Empire newsletter: https://blockworks.co/newsletter/empire?utm_source=podcasts
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Join the Empire Telegram: https://t.me/+CaCYvTOB4Eg1OWJh
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Chapters:
(00:00) Token Transparency
(02:25) The Token Market & Lemons
(11:40) Equity vs Token Risk
(14:18) Structural Token Issues
(17:12) How Did We Get Here?
(22:57) Token Horror Stories
(31:50) Token Launches
(56:50) Best Case Scenario
(01:02:38) Impact On Token Prices
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Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.
Debate: How to Value an L1 Token With Dan Smith and Jonah Weinstein
Gm and Happy Monday! This week, Dan Smith, a Lead Blockworks Researcher and Jonah Weinstein, a Portfolio Manager of SkyCatcher, join Jason to dive into the timely conversation about which metric is better/best to evaluate L1 tokens – REV or RSOV?
Start your day with the Empire newsletter by Katherine Ross: https://blockworks.co/newsletter/empire?utm_source=podcasts
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Grab your tickets to Permissionless IV. Use code EMPIRE10 for 10% off: https://blockworks.co/event/permissionless-iv
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SKALE is the next evolution in Layer 1 blockchains with a gas-free invisible user experience, instant finality, high speed, and robust security. SKALE is built different as it allows for limitless scalability and has already saved its 50 Million users over $11 Billion in gas fees. SKALE is high-performance and cost-effective, making it ideal for compute-intensive applications like AI, gaming, and consumer-facing dApps.
Learn more at https://skale.space and stay up to date with the gas-free invisible blockchain on X at @skalenetwork
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Marinade Labs develops staking technologies that strengthen Solana.In 2021, our protocol was the first to bring liquid staking to the network; today, our sophisticated, high-performance staking delegation platform brings billions in liquidity and security to the SOL market. We have solutions for both DeFi and TradFi, including liquid and native staking, as well as direct enterprise integrations.
Our best-in-market features include user downside protection (through protected staking rewards) and optimized delegation (via our automated auction marketplace). Cryptoasset investors worldwide, from individual traders to global institutions, use Marinade to earn rewards on their SOL treasuries and holdings. We are headquartered in New York, with offices in the European Union, including Prague.
To learn more about Marinade, visit https://www.marinade.finance.
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Crypto never sleeps. So we built an Al analyst that never blinks.
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Get started today: https://askfocal.com
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Ledn is the leading platform for Bitcoin-backed loans, offering a secure and transparent way to unlock liquidity without selling your Bitcoin. Ledn has issued over $9 billion in loans since 2018 and has never lost a single satoshi of client assets, earning a reputation as the name you can trust in the crypto space.Visit https://www.ledn.io to learn more.
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Chapters:
00:00 - Intro
02:31 - Why Do We Need Better Valuation Frameworks?
05:00 - What’s Wrong With The Metrics Today?
08:07 - What’s The Proper Reference Point To Understand Value?
09:33 - Are L1 Tokens Money?
11:10 - Ads (Skale Marinade)
12:48 - Is A L1 Token A Commodity Or Company?
19:32 - Why RSOV Valuation Is So Important
23:48 - Ads (Skale Marinade)
29:07 - Valuation Litmus Test
31:38 - RSOV & Capital Inflows
37:53 - What’s REV?
42:58 - RSOV’s Valuation Mechanism
44:43 - Where RSOV and REV differ
47:27 - If Native Assets 10X, Do The Hotspots?
49:05 - Ads (Falcon x, LEDN)
50:52 - Monetary L1 Premium Factor In?
55:36 - RSOV vs REV Valuation Trends Over Time
01:00:49 - How Does Staking / DeFi Deposits Impact Valuation?
01:02:47 - PE Values In RSOV
01:05:25 - Audience Question From Telegram
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Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.
What's Wrong with Crypto Data (And How To Fix It) | Roundup
In today's episode Dan Smith, Head of Data at Blockworks, joins Empire to break down why traditional crypto metrics are flawed. The episode begins with analysis of recent crypto payment acquisitions and Trump's proposed US Token Reserve, before diving deep into blockchain metrics and why REV matters more than active addresses or TVL. Dan explains Solana's outperformance of Ethereum through the lens of network revenue, examines Base's dominance in the L2 landscape, and closes with insights on Multicoin's new Solana inflation proposal.
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Help us shape the future of Empire. Fill out our audience survey and give us your thoughts: https://empire-31ed59.beehiiv.com/forms/01a0ba12-61d0-4a12-a6c6-8bbcdb3b0060
Start your day with crypto news, analysis and data from Katherine Ross and David Canellis.
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GEODNET’s native token, GEOD, can be easily mined with a GEODNET Satellite Miner, presenting a unique opportunity to generate passive income. By setting up a GEODNET base station, you can join this groundbreaking Web3 ecosystem that is powering the future of AI and robotics.
Join the revolution today and learn more at https://geodnet.com.
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Unichain is a fast, decentralized L2 that’s built to be the home for DeFi and liquidity across chains.
To stay updated on news including the upcoming launch of Unichain, visit www.Unichain.org or follow @Unichain on X.
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Ledger, the world leader in digital asset security, proudly sponsors Empire podcast. Celebrating 10 years of protecting over 20% of the world’s crypto, Ledger ensures the security of your assets. For the best self-custody solution in the space, buy a LEDGER™ device and secure your crypto today.
Buy now at www.Ledger.com
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Timestamps:
(00:00) Introduction
(01:30) Crypto's Payment Acquisitions
(08:23) Trump US Token Reserve
(11:37) Bitcoin Backed Loans
(17:41) What is Broken in Crypto Data
(23:32) Unpacking REV
(31:48) Geodnet Ad
(32:46) Uniswap Ad
(33:33) Ledger Ad
(34:16) Most Important Metrics
(47:53) Active Addresses
(55:16) MultiCoin Inflation Proposal
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Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.
J.P. Morgan’s Aave Trade Explained | Matthew Blumberg, Byron Gilliam
In this episode of Empire's Weekly Roundup, we bring on Matthew Blumberg and Byron Gilliam to discuss how J.P. Morgan - the largest bank in the US - just made history.
What happened? J.P. Morgan executed their first trade on a public blockchain (sup Polygon) using an Aave Arc clone. Tune in to find out what happened, why J.P. Morgan chose Polygon, how enterprise crypto adoption will likely play out and more!
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Timestamps:
(00:00) Introduction
(00:42) JP Morgan’s Aave Trade, What Happened?
(10:53) Permissioned DeFi, Why Do This On-Chain?
(25:09) The Aave Mafia
(26:08) Will Polygon Remain "Loyal" To Ethereum?
(31:50) Why J.P. Morgan Chose Polygon
(37:51) Social Media Is Adopting Web3
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Follow Jason: https://twitter.com/JasonYanowitz
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Follow Byron: https://twitter.com/bgilliam1982
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Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
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Resources
Decent Crypto Podcast (hosted by Matt)
https://spoti.fi/3FKxBJW
Ty Lobban's tweet thread on the J.P. Morgan trade
https://twitter.com/TyLobban/status/1587679344792829954
Erik Voorhees & SBF on Bankless
https://spoti.fi/3FIPw3M
Sandeep's tweet on Polygon "bringing the world to Ethereum"
https://twitter.com/sandeepnailwal/status/1587949120031006721
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Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.
