The R Roundup : Cosmos Chain Split ☄️ - Issue #117

Cosmos Hub, serving as an intermediary for independent blockchains within the Cosmos network, faces a potential split as founder Jae Kwon advocates for a hard fork named AtomOne.

This decision comes on the heels of the Cosmos community's endorsement to trim the native token ATOM's inflation from 14% to 10%. Despite Kwon's opposition to the proposal, it garnered 41.1% support, prompting him to call for a strategic chain split.

Kwon envisions AtomOne as a solution to the ongoing political tension within the Cosmos community, emphasizing innovation potential without the constraints of past conservatism. This move, according to Cosmos expert John Galt, could be "very bullish," resolving years of internal strife. Galt anticipates substantial benefits for ATOM token holders, including a major airdrop and heightened trading volume for both ATOM and ATOM1 tokens.

The approved reduction in ATOM's inflation, outlined in proposal 848, aims to address concerns about overpayment for security and disincentives for ATOM's use in decentralized finance. The hard fork proposal suggests integrating ATOM and ATOM1, allowing for participation without mass selling.

The proposed hard fork could mark a pivotal moment for Cosmos, offering a potential boost for investors in the long run.

Sei v2 Integrates EVM 🚢

Sei Labs, the trading-focused Layer 1 blockchain, is set to enhance its capabilities with the upcoming V2 upgrade by integrating support for the Ethereum Virtual Machine (EVM).

This strategic move will empower developers to seamlessly port Ethereum-based contracts onto the Sei network, opening up new possibilities for decentralized applications.

Incorporating Geth, a widely used Ethereum client software, Sei V2 aims to streamline the integration of EVM by developing a specialized interface. This interface will facilitate interaction between Sei's existing smart contracts component, based on CosmWasm technology, and the EVM component. CosmWasm, a custom Cosmos SDK module, enables smart contract functionality within the Cosmos ecosystem.

According to Jay Jog, co-founder at Sei Labs, Sei V2 is designed as an additive change, allowing existing components like CosmWasm to coexist. Notably, Sei V2 pioneers an environment where EVM and CosmWasm contracts can seamlessly interact, marking a significant milestone in blockchain interoperability.

In addition to EVM support, Sei V2 introduces SeiDB, a data structure aimed at optimizing the platform's storage layer. By preventing state bloat and simplifying state synchronization for new nodes, SeiDB enhances overall performance and scalability.

The V2 upgrade is currently in the final stages of code development and undergoing rigorous security audits, with a public testnet release anticipated in the first quarter of 2024 and mainnet deployment in the first half of the year.

Magic Eden Goes Cross-Chain 🪄

Magic Eden is set to revolutionize the NFT space with the launch of its closed beta Magic Eden Wallet—a cross-chain crypto wallet browser extension catering to Bitcoin, Ethereum, Solana, and Polygon users.

CEO Jack Lu envisions a multi-chain future for NFTs, aiming to simplify the user experience currently marred by the need to download multiple wallets for different blockchains.

Lu acknowledges the frustration of handling seed phrases but emphasizes the importance of self-custody in line with the Web3 ethos. The initial release of the Magic Eden wallet is self-custodied, granting users complete control over their crypto assets. While the wallet will initially launch on Google Chrome, plans for a Safari version and a mobile app are underway, with the mobile app anticipated by early 2024.

Addressing common issues with crypto browser extensions, Lu assures users that Magic Eden is actively working to prevent conflicts among various wallets. The wallet's user-friendly approach includes cross-chain token swaps, eliminating the need for bridging between different chains. Additionally, Magic Eden Wallet users can purchase crypto with fiat currency through a MoonPay integration.

The wallet boasts NFT-centric features such as cross-chain portfolio tracking, Bitcoin Ordinals support, and simultaneous connections to multiple blockchains.

Lu envisions future enhancements, including seamless implementations like email login, to enhance the onboarding experience for mainstream users. Magic Eden's innovative approach aims to streamline the NFT and crypto wallet landscape, offering a cross-chain solution that prioritizes user convenience and accessibility.

KyberSwap On-Chain Threat ⛓️

In a perplexing turn of events, the hacker responsible for the recent $47 million drain on decentralized exchange protocol KyberSwap has issued a bizarre on-chain message outlining audacious demands.

The hacker seeks full control over the company behind Kyber, temporary governance control over KyberDAO, and access to comprehensive information on the company's structure, operations, and assets.

The audacious demands extend to the surrender of all company assets, both on-chain and off-chain, including shares, equity, and intellectual property. However, the hacker claims a willingness to buy out company executives at a fair valuation if the demands are met by December 10. The message attempts to alleviate blame, stating the exploit was a result of a minor error and offering a chance for Kyber to undergo a "complete makeover" under their management.

Notably, the attacker promises a 50% rebate on losses for liquidity providers who deposited assets into KyberSwap's pools due to recent market-making activity. The ultimatum is clear: accept the terms by December 10 or risk the collapse of the proposed "treaty" deal. The hacker warns of consequences if contacted by authorities from any of the 206 sovereignties and emphasizes a desire to see Kyber flourish.

KyberSwap's co-founder, Victor Tran, responded cryptically on X, promising a message the following day.

The on-chain message surfaces a week after the significant $47 million exploit, prompting KyberSwap to encourage users to withdraw funds immediately. Despite the attacker's bold demands, KyberSwap managed to recover $4.7 million in drained funds independently on Monday.

The situation unfolds as the crypto community watches closely to see how Kyber responds to this unprecedented and audacious ultimatum.

RR Files🗂️

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As a reminder, this is not a trading signal or investment advice; it is an opinion, and each trader/investor should know and understand the risks of trading cryptocurrencies.

This should not be regarded as financial advice; feel free to familiarise yourself with our NFA disclaimer.

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