Frax

Get Frax (FRAX) all time high price, historical charts, latest news and other information.

On the 24th of June, the Horizon bridge connecting Harmony – a Layer-1 PoS blockchain built for native token ONE – to the Ethereum and Binance Chain ecosystem was hacked, leading to a loss of approximately $100 million in ETH. The exploit was announced on Twitter by the Harmony team, who stated that they are hunting for the culprit.
The Latest in a Series of Vulnerabilities

1/ The Harmony team has identified a theft occurring this morning on the Horizon bridge amounting to approx. $100MM. We have begun working with national authorities and forensic specialists to identify the culprit and retrieve the stolen funds.
More 
— Harmony  (@harmonyprotocol) June 23, 2022

The bridge has since been shut down to prevent further losses. Harmony devs have also clarified that the BTC bridge is unaffected.
The attack appears to have taken place over the span of 17 hours, starting with a transaction worth a whopping 4,919 ETH, followed by several smaller transactions ranging from 911 to 0.0003 ETH. The last one took place after the bridge had been shut down.
The hack is the latest in a series of exploits affecting the crypto space, such as the Axie Infinity drain, Solana Wormhole, or, more recently, the (misplaced) Optimism fiasco. Another recent vulnerability, the Demonic exploit, which affected multiple crypto wallets, was patched before any damage could be done.
Exchanges have reportedly been notified, as well as “national authorities and forensic specialists.” Unfortunately for Harmony, the former may not be of much help in the event the identity of the hacker is discovered, depending on the jurisdiction that the hacker may be located in.
“We have also notified exchanges and stopped the Horizon bridge to prevent further transactions. The team is all hands on deck as investigations continue. We will keep everyone up-to-date as we investigate this further and obtain more information.”
Prior Warning Issued By Independent Researchers
Curiously, a warning was issued by an independent researcher and blockchain dev Ape Dev back on the 2nd of April. In a series of tweets, Ape Dev called attention to the fact that the security of the Harmony Bridge was built around a multi-sig wallet with only four owners. He predicted that this could be used to execute a very simple attack by getting 2 of the owners to sign off on transfers worth up to $330million.
His sleuthing talents have since been recognized by Brendan Eich, the CEO and co-founder of Brave.

 https://t.co/MCi4MXJuge
— Ape Dev (@_apedev) June 24, 2022

Whether the Harmony attacker got the idea from Ape Dev’s indication or reached the same conclusion independently is unclear. In either case, however, the warning came nearly three months before the unfortunate event, which should have given Harmony devs enough time to secure their systems.
With cyberattacks becoming more and more prevalent in the crypto space, the security standards of various blockchain-based platforms will likely be scrutinized by third parties with increasing regularity – and rightfully so.


A variety of tokens were stolen using this exploit, ranging from wBTC and wETH to AAVE, FRAX, and several stablecoins among other tokens.

cryptopotato.com

Harmony Bridge Hacked, $100 Million Worth of Ethereum Lost


Frax Finance founder Sam Kazemian proposed to repurchase up to $20 million of the DeFi protocol’s own FXS token, to prop up the battered cryptocurrency following the recent marketwide sell-off.



Kazemian believes that the digital asset is “significantly undervalued” and does not represent the true value of the Frax protocol nor the “resilience” of the ecosystem’s fractional-reserve, algorithmic stablecoin FRAX.



FXS, the governance and utility token of the Frax network, surged on the news and rose 12 percent. On Friday, it later pared those gains, falling to $5.89. The token has slumped more than 85% since hitting an all-time-high of $43 in January.



The plan comes amid a market-wide crash in crypto prices that has extended for the past six months and worsened with the collapse of LUNA in May. Since its November highs, the meltdown has wiped out more than $1.6 trillion in value from the market.



“FRAX’s peg is indisputably resilient, has never been in doubt, and has held perfectly since inception. The protocol as a whole has been in excellent shape,” said Kazemian in a new governance proposal he co-wrote alongside founder Travis Moore.



“Thus, the core team does not believe the significantly worse performance of FXS compared to other tokens is justified any longer… [it] seems to be the most undervalued out of all other volatile assets Frax could hold on the balance sheet,” he added.



Kazemian criticizes “market irrationality”



The Frax protocol is split between its stablecoin and a governance token, Frax shares (FXS). FRAX is pegged to the U.S. dollar and keeps that parity by being partially collateralized by USDC. FXS also helps with the peg as it accrues fees and seigniorage revenue.



Kazemian said the protocol made $80 million in annual revenue and had a “formidable warchest and cash flows that it can…take advantage of this mispricing [of FXS].” In his proposal, he stated that Frax will finance the buyback through a combination of available cash and profits.



If approved, the $20 million repurchase program will be done over a 30-day period using a method known as ‘time-weighted average market maker’ (TWAMM). The method allows for large long-term orders to be broken into several smaller orders executed over time to minimize price shocks.



“Frax is strong and profitable enough to take advantage of the market irrationality on its governance token,” stated Kazemian. “Should the proposal pass, the FXS bought back can be burned entirely, placed in veFXS yield, or retained in the treasury until future governance allocates uses.”



Is this simply a temporary relief?



There is about 16.2 million FXS tokens in circulation from a total supply of 100 million, as per Coinmarketcap. Kazemian is hoping that a reduction in supply would help boost the price of the token. But not everyone agrees with his proposal.



[It] seems like a move that would help in the price short run. I would leave it to the market to properly price FXS and focus on allocating the budget to accumulate tokens that can bring yield and stability to the protocol in the long run,” said one user, Messey_Tony, responding on the Frax forum.



Another, identified as Seba, laid out a series of arguments on why Frax should not spend $20 million on the buyback. Seba said the repurchase “won’t be more than a temporary relief and an opportunity for non-committed investors to sell their FXS.”



“The long term investors, the ones that locked liquidity for years, won’t benefit at all from this. Most importantly this buyback does not benefit Frax at all, does not help build a market nor use cases for it, and towards this goal is how we should spend funds,” he complained.



What do you think about this subject? Write to us and tell us!.
The post Frax Founder Sam Kazemian Plans $20M Repurchase of ‘Undervalued’ FXS Token appeared first on BeInCrypto.


Frax Finance founder Sam Kazemian proposed to repurchase up to $20 million of the DeFi protocol's own FXS token.
The post Frax Founder Sam Kazemian Plans $20M Repurchase of &#8216;Undervalued&#8217; FXS Token appeared first on BeInCrypto.


beincrypto.com

Frax Founder Sam Kazemian Plans $20M Repurchase of ‘Undervalued’ FXS Token

Algorand, Frax Share and Helium staged brief double-digit rallies in an otherwise stagnant market, thanks to a major partnership and new project developments.

Frax price	$0.999552
Low - High 24H	$0.987899 - $1.00
Market cap	$1.37B
Volume 24H	$12.22M
All time high	$1.14 -12.31% February 7th 2021
All time low	$0.891635 12.16% December 4th 2021
Genesis date	N/A

Recently viewed

Trending

Frax (FRAX)

Performance

Frax News

Quick stats