DeFi
Two booming DeFi protocols have released similar code. Was it copied? – DL News
- Riding the hype surrounding EigenLayer, fluid restoration protocols are growing at a rapid pace.
- The code released by two liquid restoration protocols, Renzo and Kelp DAO, appears similar.
- One of the protocols told DL News that its code had been copied.
Nearly identical lines of code released by two protocols that sit atop Ethereum’s sparkling liquid catering business have raised questions about their authorship amid a long-running debate over open source development culture of cryptography.
A DL News Analysis and interviews with developers not involved in the situation revealed identical “comments” nestled in the code of both protocols – a sort of note left by the developers – that suggest one team copied it from the ‘other.
The code, published by competitors Renzo and Kelp DAO, enables what is called native restore.
This feature allows users to bypass deposit caps that limit access to EigenLayer, the multi-billion dollar protocol that pioneered reinvestment on Ethereum.
It’s a heady time for the liquid restocking industry, and the protocols that leverage EigenLayer are ride the hype. Several have debuted in recent weeks, and older protocols, like Renzo, Ether.Fi and Kelp DAO, are growing rapidly.
Renzo has offered native recovery since December, while Kelp DAO teased its own native restore feature last week.
Not yet open source
“Kelp DAO’s native recovery solution is not active and the final code repositories are not yet open source,” a Kelp DAO spokesperson said in an emailed statement.
“Multiple intermediate versions of the code are used for testing/R&D before mainnet launch. Developers should use the final codebase deployed to mainnet as a reference.
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Kelp did not respond to a request for additional comment on the similarities.
Meanwhile, James Poole, Renzo’s chief technology officer, said DL News that the Renzo code was protected by a license which prohibits competitors from using it “in production”.
“There is no doubt that sections of Renzo’s code were copied into the Stader/Kelp DAO source code,” Poole said.
“If there are any questions about where our code base comes from, we would be happy to share our full GitHub repository with a third party for review.”
Comments and timestamps
The suspicious code was posted to GitHub, an online platform that allows software developers to create, store and share their work.
Timestamps on GitHub show that some of Kelp DAO’s native rollback code was added in January, several weeks after Renzo released similar code.
But developers can backdate their additions. Additionally, Renzo’s code was, somewhat unusually, added in a few massive chunks, while Kelp DAO’s is showing steady “organic” growth, according to developers who spoke to DL News.
That’s because Renzo developed his software in a private repository, Poole explained.
“Many projects in the field follow the same model for reasons of competitiveness and optics,” he said. “Developing code can be a complicated process. »
Given the limits of publicly available data and the ease with which some GitHub data can be falsified, it’s difficult to prove who copied whom, said Molly White, a software engineer and affiliate at Harvard’s Berkman Klein Center for Internet & Society . DL News.
But one Audit of Renzo code released in December by crypto security firm Halborn suggests that Renzo did not backdate his additions, White said.
“The Halborn audit and the verifiable timeline of it makes me lean much more strongly toward taking kelp from Renzo rather than the other way around,” she said.
Kelp did not respond to a request for comment regarding White’s conclusion.
Like Uniswap v4, Renzo’s code is covered by a Business Source license, which protects the code in question from third-party use and profit for a certain period of time.
But that shouldn’t prohibit its use for testing, according to Moish Peltz, an intellectual property attorney at the New York law firm Falcon Rappaport & Berkman.
“My interpretation of BSL is that it allows for non-production use,” he said. DL News. “But the details will depend on the actual code involved.”
The code for Kelp DAO’s native staking functionality is protected by the more permissive GNU General Public License, or GPL, which allows commercial use by competitors provided their copy also uses the GPL or a similar license.
The open source debate
It’s the latest example of a problem plaguing an industry that touts open source development: To what extent should projects borrow or use someone else’s code, or tolerate a direct competitor doing so?
“If you’re just looking to pull the rug out or make a quick buck, it’s likely to cause an argument. And you’re an asshole.
Copying or borrowing another project’s code is generally encouraged in crypto, according to Matias Nisenson, CEO of DeFi Wonderland, a developer collective.
“It’s all about the value you bring to the ecosystem and the original developers,” he said. “If you’re just looking to pull the carpet or to make some quick money, it will probably cause an argument. And you’re an asshole.
But developers who copy others’ code in good faith, believing they can improve on the work of the original developers, are often praised, provided they comply with licenses that govern how the code can be used, he said. for follow-up.
There are myriad examples in action: Reflexer, the team behind the experimental RAI project and HAI stablecoins, encourages forks. Spark protocol copied code from Aave lending protocol and now send Save part of your income.
“It’s always welcome to check with the developers first and see what they think of your ideas,” Nisenson said.
“The opposite scenario could also be true: someone wants to add value to an ecosystem and the original developers aren’t open to their ideas, so you develop them and build your vision. It’s fair game.
Still, crypto’s borrow-at-will philosophy sometimes causes friction. The problem flared up several times last year.
Open source advocates have criticized DeFi titan Uniswap for announcing a new iteration of its decentralized exchange under a Business Source license, effectively suspending its commercial use by competitors for four years.
Executives at crypto lending protocol Maple Finance complained that Circle was using their code without attribution. Circle says DL News at the time, he had not copied Maple’s code.
And Stader Labs, the parent company behind Kelp DAO, defended himself against accusations its liquid staking protocol was a “fork” or copy of competitor Rocket Pool.
Stader said the code in question was only a fraction of a much larger product built by Stader.
“Incorporating open source elements is a very common practice in software development, and even more so in the open source blockchain ecosystem,” Stader wrote in a blog post.
Aleks Gilbert is DL News’ DeFi correspondent in New York. Do you have any advice? Contact him at aleks@dlnews.com.
The memecoin launchpad saw the largest daily revenue in all of DeFi over the past 24 hours.
Memecoin launchpad Pump.Fun has recorded the highest gross revenue in all of decentralized finance (DeFi) in the last 24 hours, surpassing even Ethereum.
The platform has raised $867,429 in the past 24 hours, compared to $844,276 for Ethereum, according to DeFiLlama. Solana-based Telegram trading bot Trojan was the third-highest revenue generator of the day, as memecoin infrastructure continues to dominate in DeFi.
Pump.Fun generates $315 million in annualized revenue according to DeFiLlama, and has averaged $906,160 per day over the past week.
Income Ranking – Source: DeFiLlama
The memecoin frenzy of the past few months is behind Pump.fun’s dominance. Solana-based memecoins have been the main drug of choice for on-chain degenerates.
The app allows non-technical users to launch their own tokens in minutes. Users can spend as little as $2 to launch their token and are not required to provide liquidity up front. Pump.Fun allows new tokens to trade along a bonding curve until they reach a set market cap of around $75,000, after which the bonding curve will then be burned on Raydium to create a safe liquidity pool.
Pump.Fun generates revenue through accrued fees. The platform charges a 1% fee on transactions that take place on the platform. Once a token is bonded and burned on Raydium, Pump.fun is no longer able to charge the 1% fee.
Ethereum is the blockchain of the second-largest cryptocurrency, Ether, with a market cap of $395 billion. It powers hundreds of applications and thousands of digital assets, and backs over $60 billion in value in smart contracts.
Ethereum generates revenue when users pay fees, called gas and denominated in ETH, to execute transactions and smart contracts.
DeFi Technologies, a Canadian company financial technology companyis set to enhance its trading infrastructure through a new partnership with Zero Computing, according to a July 30 statement shared with CryptoSlate.
The collaboration aims to integrate zero-knowledge proof tools to boost operations on the Solana And Ethereum blockchains by optimizing its ability to identify and execute arbitrage opportunities.
Additionally, it will improve the performance of its DeFi Alpha trading desk by enhancing its use of ZK-enabled maximum extractable value (MEV Strategies).
Zero knowledge Proof of concept (ZKP) technology provides an additional layer of encryption to ensure transaction confidentiality and has recently been widely adopted in cryptographic applications.
Optimization of trading strategies
DeFi Technologies plans to use these tools to refine DeFi Alpha’s ability to spot low-risk arbitrage opportunities. The trading desk has already generated nearly $100 million in revenue this year, and this new partnership is expected to further enhance its algorithmic strategies and market analysis capabilities.
Zero Computing technology will integrate ZKP’s advanced features into DeFi Alpha’s infrastructure. This upgrade will streamline trading processes, improve transaction privacy, and increase operational efficiency.
According to DeFi Technologies, these improvements will increase the security and sophistication of DeFi Alpha’s trading strategies.
The collaboration will also advance commercial approaches for ZK-enabled MEVs, a new concept in Motor vehicles which focuses on maximizing value through transaction fees and arbitrage opportunities within block production.
Additionally, DeFi Technologies plans to leverage Zero Computing technology to develop new financial products, such as zero-knowledge index exchange-traded products (ETPs).
Olivier Roussy Newton, CEO of DeFi Technologies, said:
“By integrating their cutting-edge zero-knowledge technology, we not only improve the efficiency and privacy of our transactions, but we also pave the way for innovative trading strategies.”
Extending Verifiable Computing to Solana
According to the release, Zero Computing has created a versatile, chain-agnostic platform for generating zero-knowledge proofs. The platform currently supports Ethereum and Solana, and the company plans to expand compatibility with other blockchains in the future.
The company added that it is at the forefront of introducing verifiable computation to the Solana blockchain, enabling complex computations to be executed off-chain with on-chain verification. This development represents a significant step in the expansion of ZKPs across various blockchain ecosystems.
Mentioned in this article
Latest Alpha Market Report
Singapore, Asia, July 29, 2024, Chainwire
- Elastos BeL2 to Partner with StarkWare to Integrate Starknet’s ZKPs and Cairo Programming Language with BeL2 for Native DeFi Applications
- Starknet integration allows BeL2 to provide smart contracts and dapps without moving Bitcoin assets off the mainnet
- Starknet Exchange Validates the Strength of BeL2’s Innovation and Leadership in the Native Bitcoin Ecosystem
Elastos BeL2 (Bitcoin Elastos Layer2) has secured a $25,000 grant from Starknet, a technology leader in the field of zero-knowledge proofs (ZKPs). This significant approval highlights the Elastos BeL2 infrastructure and its critical role in advancing Bitcoin-native DeFi, particularly Bitcoin-native lending. By integrating Starknet’s ZKPs and the Cairo programming language, Elastos’ BeL2 will enhance its ability to deliver smart contracts and decentralized applications (dapps) without moving Bitcoin (BTC) assets off the mainnet. This strategic partnership with Starknet demonstrates the growing acceptance and maturity of the BeL2 infrastructure, reinforcing Elastos’ commitment to market leadership in the evolving Bitcoin DeFi market.
Starknet, developed by StarkWare, is known for its advancements in ZKP technology, which improves the privacy and security of blockchain transactions. ZKPs allow one party to prove to another that a statement is true without revealing any information beyond the validity of the statement itself. This technology is fundamental to the evolution of blockchain networks, which will improve BeL2’s ability to integrate complex smart contracts while preserving the integrity and security of Bitcoin.
“We are thrilled to receive this grant from Starknet and announce our partnership to build tighter integrations with its ZKP technology and the Cairo programming language,” said Sasha Mitchell, Head of Bitcoin Layer 2 at Elastos. “This is a major milestone for BeL2 and a true recognition of the maturity and capabilities of our core technology. This support will allow us to further develop our innovation in native Bitcoin lending as we look to capitalize on the growing acceptance of Bitcoin as a viable alternative financial system.”
A closer integration with Cairo will allow BeL2 to leverage this powerful programming language to enhance Bitcoin’s capabilities and deliver secure, efficient, and scalable decentralized finance (DeFi) applications. Specifically, the relationship with Cairo reinforces BeL2’s core technical innovations, including:
- ZKPs ensure secure and private verification of transactions
- Decentralized Arbitrage Using Collateralized Nodes to Supervise and Enforce Fairness in Native Bitcoin DeFi
- BTC Oracle (NYSE:) facilitates cross-chain interactions where information, not assets, is exchanged while Bitcoin remains on the main infrastructure
BeL2’s vision goes beyond technical innovation and aims to innovate by creating a new financial system. The goal is to build a Bitcoin-backed Bretton Woods system, address global debt crises, and strengthen Bitcoin’s role as a global hard currency. This new system will be anchored in the integrity and security of Bitcoin, providing a stable foundation for decentralized financial applications.
As integration with Starknet and the Cairo programming language continues, BeL2 will deliver further advancements in smart contract capabilities, decentralized arbitration, and innovative financial products. At Token 2049, BeL2 will showcase further innovations in its core technologies, including arbitrators, that will underscore Elastos’ vision for a fairer decentralized financial system rooted in Bitcoin.
About Elastos
Elastos is a public blockchain project that integrates blockchain technology with a suite of redesigned platform components to produce a modern Internet infrastructure that provides intrinsic privacy and ownership protection for digital assets. The mission is to create open source services that are accessible to the world, so developers can create an Internet where individuals own and control their data.
The Elastos SmartWeb platform enables organizations to recalibrate how the Internet operates to better control their own data.
https://www.linkedin.com/company/elastosinfo/
ContactPublic Relations ManagerRoger DarashahElastosroger.darashah@elastoselavation.org
DeFi
Compound Agrees to Distribute 30% of Reserves to COMP Shareholders to End Alleged Attack on Its Governance
Compound will introduce the staking program in exchange for Humpy, a notorious whale accused of launching a governance attack on the protocol, negating a recently adopted governance proposal.
Compound is launching a new staking program for COMP holders as a compromise with Humpy, a notorious DeFi whale accused of launching a governance attack against the veteran DeFi protocol.
On July 29, Bryan Colligan, head of business development at Compound, published a governance proposal outlining plans for a new compound participation product that would pay 30% of the project’s current and future reserves to COMP participants.
Colligan noted that the program was requested by Humpy in exchange for his agreement Proposition 289 — which sought to invest 499,000 COMP worth approximately $24 million into a DeFi vault controlled by Humpy, and which appears to have been forced by Humpy and his associates over the weekend.
“We propose the following staking product that meets Humpy’s stated interests as a recent new delegate and holder of COMP in exchange for the repeal of Proposition 289 due to the governance risks it poses to the protocol,” Colligan said. “The Compound Growth Program…will execute the above commitments, given the immediate repeal of Proposition 289.”
Colligan added that the proposal would expire at 11:59 p.m. EST on July 29. Had Humpy not rescinded Proposition 289, Compound would move forward with it. Proposition 290 — block Humpy using the Compound team’s multi-sig to deploy a new governor contract removing the delegate’s governance power behind Proposition 289.
Hunchback tweeted that Proposition 289 had been repealed a few hours ago. “Glad to have brought Compound Finance back into the spotlight,” they said. added. “StakedComp… finally becomes a yield-generating asset!
Markets reacted favorably to the resolution, with the price of COMP increasing by 6.2% over the past 24 hours, according to CoinGecko.
Attack on governance
Proposition 289 proposed investing 499,000 COMP from the Compound treasury into goldCOMP, a yield-generating vault of the Humpy-linked Golden Boys team.
The proposal passed with nearly 52 percent of the vote on July 28, despite two previous iterations of the proposal being defeated by strong opposition. Can And JulyThe proposals notably asked for only 92,000 COMP, with security researchers warning that any deposit of tokens into the goldCOMP vault would cede their governance power.
In May, Michael Lewellen of Web3 security firm OpenZeppelin, note The first proposal was submitted by a new governance delegate who was suddenly awarded 228,000 COMP by five wallets that got their tokens from the Bybit exchange. Combined with his own tokens, the delegate got 325,333 COMP, which is over 81% of the 400,000 tokens required for a governance proposal to reach quorum.
“We have been alerting the community to the risk that these delegates could support a potential attack on governance,” Lewellen said. “The timing of the new proposal and these recent delegations are suspect.”
Read more: Compound community accuses famous whale of attacking engineering governance
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