Trend Bulletin

Tag: Security

  • BLAST Layer 2 Network Faces Growth Challenges Despite Innovative Yield Features

    BLAST Layer 2 Network Faces Growth Challenges Despite Innovative Yield Features

    Since its launch in November 2023, BLAST has stood out as a unique Layer 2 (L2) network on Ethereum, offering native yield on ETH and stablecoins. This feature attracted significant attention, leading to rapid growth. However, the platform has faced challenges, including declining user engagement and security concerns.

    Understanding BLAST’s Native Yield

    BLAST differentiates itself by automatically providing yield to users who deposit ETH and stablecoins. For ETH, the platform integrates with Lido, a liquid staking protocol, allowing users to earn staking rewards without additional steps. Stablecoin deposits are converted into USDB, BLAST’s auto-rebasing stablecoin, which generates yield through MakerDAO’s on-chain Treasury bill protocol. This approach simplifies the process of earning passive income, making it accessible to a broader audience. (coingecko.com)

    Rapid Growth and Subsequent Decline

    Initially, BLAST experienced impressive growth. Within six months, the platform’s Total Value Locked (TVL) reached over $2.7 billion, positioning it among the top Layer 2 networks. However, this momentum was short-lived. Over the past year, TVL has plummeted to approximately $105 million, a decline of about 96%. Daily active users have also decreased significantly, from a peak of 180,000 to around 3,800. This downturn reflects challenges within BLAST’s ecosystem, including issues with token airdrops and user dissatisfaction with distribution processes. (coinbureau.com)

    Security and Governance Concerns

    BLAST’s technical capabilities are notable, with the network handling up to 100,000 transactions per second using optimistic rollup technology. However, security and governance have been points of contention. The platform employs a 3-of-5 multi-signature wallet for asset custody, raising questions about centralization and transparency. The anonymity of the signatories and the upgradeable nature of smart contracts have led to concerns about potential modifications without user consent. Critics have highlighted these issues, emphasizing the need for greater transparency and security measures. (ccn.com)

    Ecosystem Challenges and Fraud Incidents

    The BLAST ecosystem has faced several security incidents that have impacted its reputation. Notable examples include:

    • RiskOnBlast: Experienced a rug pull in February 2024, resulting in losses of approximately 500 ETH.
    • Super Sushi Samurai: Suffered a $4.6 million exploit due to smart contract vulnerabilities.

    These incidents underscore the importance of robust security practices and thorough project vetting within the BLAST ecosystem. (square.htx.com)

    Conclusion

    BLAST’s journey highlights the complexities of balancing innovation with security and user trust in the blockchain space. While the platform introduced novel features like native yield, the challenges it faces serve as a reminder of the importance of transparency, robust governance, and continuous improvement in the rapidly evolving world of decentralized finance.

    also read:Liquitys LQTY Rebounds Towards $1.00 Amid Positive Protocol Developments and Technical Signals

  • Beginners Guide to Mobile Cryptocurrency Trading and Security Tips

    Beginners Guide to Mobile Cryptocurrency Trading and Security Tips

    Trading Cryptocurrency from Your Smartphone: A Beginner’s Guide

    With the rise of digital currencies, trading cryptocurrency has become more accessible than ever. Now, you can manage your crypto investments directly from your smartphone, whether you’re at home or on the go. This guide will walk you through the basics of trading crypto on your mobile device and highlight important security measures to keep your assets safe.

    Getting Started with Mobile Crypto Trading

    To begin trading cryptocurrencies on your smartphone, follow these steps:

    1. Choose a Reliable Crypto Exchange App: Select a reputable cryptocurrency exchange that offers a mobile application compatible with your device. Popular options include Coinbase, Binance, and Kraken. Ensure the app has positive reviews and robust security features.
    2. Create and Verify Your Account: Download the app and sign up for an account. You’ll need to provide personal information and verify your identity, a standard procedure to comply with regulations.
    3. Secure Your Account: Set up a strong, unique password and enable two-factor authentication (2FA) for an added layer of security. 2FA typically involves receiving a code on your phone or email that you must enter alongside your password.
    4. Deposit Funds: Link your bank account or credit card to deposit funds into your exchange account. Be aware of any fees associated with deposits and withdrawals.
    5. Start Trading: Once your account is funded, you can begin buying and selling cryptocurrencies. Familiarize yourself with the app’s interface and trading options.

    Understanding the Risks of Public Wi-Fi

    While trading on your smartphone offers convenience, it’s crucial to be aware of the risks associated with using public Wi-Fi networks. Public Wi-Fi, such as those found in coffee shops, airports, and hotels, often lack proper encryption, making it easier for hackers to intercept your data. This can lead to unauthorized access to your crypto accounts and potential loss of funds. ([purevpn.com](https://www.purevpn.com/blog/how-to-trade-crypto-safely-on-public-wi-fi/?utm_source=openai))

    Best Practices for Secure Mobile Crypto Trading

    To protect your digital assets while trading on your smartphone, consider the following best practices:

    • Use a Virtual Private Network (VPN): A VPN encrypts your internet connection, making it more difficult for hackers to intercept your data. This is especially important when accessing your crypto accounts over public Wi-Fi. ([purevpn.com](https://www.purevpn.com/blog/how-to-trade-crypto-safely-on-public-wi-fi/?utm_source=openai))
    • Enable Two-Factor Authentication (2FA): Adding 2FA to your crypto accounts ensures that even if someone obtains your password, they cannot access your account without the second verification step. ([help.cryptoclass.link](https://help.cryptoclass.link/hc/en-us/articles/30143158066577-How-to-Securely-Use-Crypto-on-Public-Wi-Fi?utm_source=openai))
    • Keep Your Software Updated: Regularly update your smartphone’s operating system and the crypto trading app to benefit from the latest security patches. ([incoinsight.com](https://incoinsight.com/learn/article/how-to-keep-cryptoassets-safe-when-using-wifi?utm_source=openai))
    • Use Secure Passwords: Create strong, unique passwords for your crypto accounts and avoid reusing passwords across different platforms. ([incoinsight.com](https://incoinsight.com/learn/article/how-to-keep-cryptoassets-safe-when-using-wifi?utm_source=openai))
    • Avoid Public Wi-Fi for Transactions: Whenever possible, use a secure, private internet connection when accessing your crypto accounts. If you must use public Wi-Fi, ensure you’re connected to a legitimate network and use a VPN. ([purevpn.com](https://www.purevpn.com/blog/how-to-trade-crypto-safely-on-public-wi-fi/?utm_source=openai))

    Conclusion

    Trading cryptocurrency on your smartphone offers unparalleled convenience, allowing you to manage your investments from virtually anywhere. However, it’s essential to prioritize security to protect your digital assets. By following the best practices outlined above, you can trade confidently and securely, even when using public Wi-Fi networks.

    also read:Earning Passive Income with DOT Miners Cloud Mining for Bitcoin and Ripple

  • DeFi Security Risks Highlighted by Resupply Stablecoin Price Manipulation Incident

    DeFi Security Risks Highlighted by Resupply Stablecoin Price Manipulation Incident

    In the rapidly evolving world of decentralized finance (DeFi), security remains a paramount concern. A recent incident involving the Resupply stablecoin protocol underscores the vulnerabilities that can be exploited through token price manipulation. On June 25, 2025, an attacker manipulated token prices to distort exchange rates, resulting in a loss of approximately $9.5 million from Resupply. This exploit was first identified by the security platform BlockSec Phalcon, which detected a suspicious transaction leading to the substantial loss.

    Resupply confirmed the incident, stating that the affected smart contract had been paused and that the attack was limited to its wstUSR market. The team assured users that a thorough post-mortem was underway and that the core protocol remained operational.

    This event highlights the pressing need for DeFi protocols to implement robust measures to prevent token price manipulation. Below, we explore several strategies that can enhance the security and integrity of DeFi platforms.

    Understanding Token Price Manipulation

    Token price manipulation involves artificially inflating or deflating the price of a cryptocurrency to deceive market participants. In the context of DeFi, attackers often exploit vulnerabilities in smart contracts or oracles to manipulate prices, leading to significant financial losses.

    Implementing Robust Slippage Controls

    One effective defense against price manipulation is the implementation of slippage controls. Slippage refers to the difference between the expected price of a trade and the actual executed price. By allowing users to set their maximum acceptable slippage, protocols can automatically reject transactions that exceed these thresholds, thereby protecting users from unfavorable trades. ([medium.com](https://medium.com/%40julianalricraiden/how-to-avoid-sandwich-and-oracle-manipulation-attacks-in-dex-contracts-856db25ae5de?utm_source=openai))

    Utilizing Time-Weighted Average Prices (TWAP)

    Relying on spot prices can make protocols susceptible to manipulation. Implementing Time-Weighted Average Price (TWAP) mechanisms, which calculate average prices over specified time intervals, can mitigate this risk. TWAPs smooth out temporary price spikes, providing more reliable valuation metrics and making price manipulation significantly more challenging. ([medium.com](https://medium.com/%40julianalricraiden/how-to-avoid-sandwich-and-oracle-manipulation-attacks-in-dex-contracts-856db25ae5de?utm_source=openai))

    Diversifying Oracle Sources

    Oracles play a crucial role in providing external data to smart contracts. Relying on a single oracle source can be risky, as it creates a single point of failure. By aggregating data from multiple independent oracles, protocols can enhance their resistance to manipulation. This approach ensures that even if one price feed is compromised, the impact is diluted by data from other sources. ([blog.chain.link](https://blog.chain.link/defi-security-best-practices/?utm_source=openai))

    Conducting Regular Smart Contract Audits

    Regular audits by reputable security firms can identify and address vulnerabilities in smart contracts. These assessments help ensure that the code is secure and that potential attack vectors are mitigated. Engaging in continuous monitoring and updating of smart contracts can further enhance security.

    Implementing Circuit Breakers and Rate Limiting

    Incorporating circuit breakers that halt trading during extreme price movements can prevent cascading failures and market instability. Additionally, implementing rate limiting can restrict the volume or frequency of trades within specific time windows, making rapid manipulation attempts more difficult. ([medium.com](https://medium.com/%40julianalricraiden/how-to-avoid-sandwich-and-oracle-manipulation-attacks-in-dex-contracts-856db25ae5de?utm_source=openai))

    Enhancing Governance Mechanisms

    Decentralized governance enables the community to participate in decision-making processes, ensuring that changes to protocols are made transparently and with broad consensus. This democratic approach can help align incentives, encourage community-driven development, and reduce the risk of manipulation. ([coinscreed.com](https://coinscreed.com/addressing-price-volatility-in-the-defi-landscape.?utm_source=openai))

    Monitoring Market Trends and Anomalies

    Continuous monitoring of liquidity and trading volumes can assist in identifying unusual trends that might suggest manipulation attempts. By staying vigilant and analyzing market data, protocols can detect and respond to suspicious activities promptly. ([bitrabo.com](https://www.bitrabo.com/discover/navigating-the-threat-of-price-oracle-manipulation-in-defi-a-security-imperative/?utm_source=openai))

    Conclusion

    The recent exploit of the Resupply stablecoin protocol serves as a stark reminder of the vulnerabilities present in the DeFi ecosystem. By implementing robust security measures such as slippage controls, TWAP mechanisms, diversified oracles, regular audits, circuit breakers, enhanced governance, and continuous monitoring, DeFi protocols can significantly reduce the risk of token price manipulation. As the DeFi landscape continues to evolve, prioritizing security will be essential in fostering trust and ensuring the long-term success of decentralized financial platforms.