On-chain sleuth TardFiWhale has become concerned about structural weaknesses in the Ethereum-based “synthetic stablecoin” USDe from the Ethena Labs team.
They're paying me off to stop shitposting Ethena; how they're launching a bug bounty program AFTER launching their token allowing insiders to cash out from their shard campaign participation and hedge out with perps while not publicly disclosing material risks omitted from docs. https://t.co/twYeJ3CcSI
— TardFiWhale.eth (@TardFiWhale) April 1, 2024
TardFiWhale's statements carry significant weight in the crypto community because he predicted the collapse of the Terra ecosystem and the UST stablecoin several months before their collapse.
In mid-March, a researcher requested a $500,000 reward for revealing the stablecoin's vulnerability. He later raised this amount to $1 million.
Bounty has gone up to $1mm. 50% @ProtocolGuild 25% @zachxbt 25% @rstormsf and @alex_pertsev legal defense
Why? Maker is making proposals to push hundreds of millions into a currently broken product in USDe. Mantle has 90mm in @ethena_labs
Retweet to make this happen https://t.co/dboF6bFd2m
— TardFiWhale.eth (@TardFiWhale) March 19, 2024
TradFiWhale said it is determined to prevent another financial disaster by reflecting on past crises in the crypto space.
He intended to send the potential reward for discovering the vulnerability to the Protocol Guild team (50%), another on-chain detective ZachXBT (25%), as well as legal support for the developers of the Tornado Cash cryptomixer – Alexey Pertsev and Roman Storm (25%).
TradFiWhale criticized some industry participants for promoting an insecure project, in particular former BitMEX CEO Arthur Hayes.
Hayes talked about Ethena on podcast journalist Colin Wu. During the conversation, he mentioned “potential risks” associated with the stablecoin, but did not go into detail.
He mainly talked about the great capabilities of the protocol and predicted the growth of its TVL to $10 billion or more. Hayes also allowed competition between USDe and USDT in the future.
On April 2, Ethena Labs opened a page for hallmarking 750 million ENA governance tokens. Several centralized platforms, including Binance, have listed the asset.
Source: Cryptocurrency
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