Optimism-based lending protocol, Kokomo Finance, has come under suspicion of conducting an “exit scam” worth around $4 million. The alleged rug pull was brought to light by blockchain security firm CertiK, who alerted its followers to the incident via a tweet on March 26.

According to CertiK, the Kokomo Finance token (KOKO) fell by a staggering 95% in value within minutes, after the deployer of KOKO attacked the smart contract code of a wrapped Bitcoin token, cBTC. The attacker reportedly reset the reward speed and paused the borrow function before approving the new cBTC smart contract to spend over 7000 Sonne Wrapped Bitcoin (So-WBTC).

@azcoinnews

The attacker then called another command to swap the So-WBTC to an address starting with “0x5a2d,” which resulted in a $4 million profit for the address. CertiK also highlighted that Kokomo Finance removed all its social media accounts immediately after the alleged scam took place.

Kokomo Finance is an open-source and noncustodial lending protocol on Optimism, where investors could trade wBTC, Ether (ETH), Tether (USDT), USD Coin (USDC), and Dai (DAI). The platform has not made any official statements on the alleged scam.

The incident raises concerns over the security of DeFi protocols, as several similar incidents have occurred in recent times. Rug pulls and exit scams have become commonplace in the DeFi space, leading to massive losses for investors.

The alleged scam also highlights the importance of conducting thorough research before investing in any DeFi project. Investors should evaluate the project’s credibility, security, and transparency before putting their money into it.

Overall, the alleged exit scam by Kokomo Finance is a reminder of the risks involved in investing in DeFi projects, and investors should always exercise caution and due diligence.

#Kokomo #Kokomofinance #DeFi #optimism #azcoinnews

This article was republished from azcoinnews.com

Optimism, a Layer 2 scaling platform for Ethereum, has set June 6 as the official date for a major upgrade to its mainnet called Bedrock.

The upgrade, discussed earlier this year, will require two to four hours of downtime during which transactions, deposits and withdrawals will not be available, the Optimism Foundation said Monday in a thread on Twitter.

"Bedrock will improve the security and resilience of the OP Mainnet bridge," the foundation said, adding that it would significantly cut fees. "Bedrock is designed with the most minimal diff on Ethereum possible. Ethereum equivalence + minimized complexity = less room for bugs, easier for ecosystem devs to contribute."

The foundation said that additional information will be available on a mission control website. One of the upgrade's key design goals is backward compatibility.

Optimism rollups

"If you are a node operator, you will need to spin up a brand new node deployment for Bedrock," the foundation added.

Optimism uses optimistic rollups, a technology that allows for the bundling of multiple transactions that are then recorded on the Ethereum blockchain in a single transaction. The network has around $863 million of locked assets on the platform.

"Bedrock makes it easy to contribute to client diversity (@a16zcrypto Magi [email protected]_io's op-erigon are early proof of this)," the foundation added.

#op #optimism #crypto2023

The third RetroPGF round will take place this fall, according to optimism. Builders, inventors, and instructors who have helped Optimism flourish and become popular will get 30M $OP tokens as part of the initiative. Project registration for RetroPGF Round 3 will begin in the next months, and voting will take place in the fall of 2023. A Layer 2 scaling approach called optimism seeks to increase Ethereum's scalability.

• Round 3 Details

30 million OP tokens will be given out as part of RetroPGF 3 to acknowledge efforts that have aided in the growth and acceptance of Optimism. Four categories are available for work nominations:

• OP Stack: Activities that increased the OP Stack's effectiveness, security, resilience, and awareness.

• Collective Governance: work that had an effect on the Optimism Collective's governance participants or that attracted new governance participants to the Collective

• Developer Ecosystem: Activities that benefited Optimism Collective application creators or attracted new developers to the Collective.

• End User Experience & Adoption: work that had an influence on Optimism Collective end users or attracted new end users to the Collective

#BTC #cryptocurrency #optimism

Bedrock Upgrade to Reduce Protocol Costs

Token House, the governing organization of the Layer 2 Optimistic Rollup network Optimism, has approved the upgrade for Optimism Bedrock's Mainnet.

Voting Cycle 11 has concluded. Two votes were brought to the Token House, and both have passed. Not only was this was the Collective’s first onchain vote using the new https://t.co/dmCOuX4B4i—it was also the first Protocol Upgrade.

— Optimism Governance (@OptimismGov) April 6, 2023

According to the protocol, the Bedrock upgrade proposal had the highest voter turnout in OP Governance history. There was 27.945 $OP in favour of the proposal, and 37.217k $OP was against it.

This new proposal concludes voting cycle 11. A total of two votes were taken in Token House, and both were passed.

The Bedrock network upgrade aims to improve performance and security by providing enhanced modularity, simplicity, and Ethereum parity to the L2 network. The Bedrock release seeks to reduce transaction costs, improve throughput characteristics, and sync speeds across the board. There is an estimate that the upgrade can reduce protocol costs/security fees by 47%.

Optimism will be able to withstand time and also adapt to multi-chain environments with this codebase.

During the migration, there will be a pause in deposits and sequencer transaction ingestion, which will effectively result in network downtime, expected to last four hours.

According to Optimism Governance Organization, this upgrade will not require a "regenesis," and historic chain data will remain accessible. Therefore, end-users of Optimism are unlikely to be required to do much other than be aware of that timing.

‍

Increasing Competition With Layer-2 Networks

OP Labs froze the Bedrock code on the Goerli Testnet on March 4 and said it would announce a launch date after the code has been stable for two weeks.

The recent move comes amid increasing competition within Ethereum's Layer 2 (L2) ecosystem, as Matter Labs and Polygon launched zkEVM solutions last month.

According to L2Beat, Optimism holds $1.94 billion in assets following a record-high total value locked (TVL) of $2.15B on March 18. Even with TVL near all-time highs, Optimism represents just 21.4% of the combined Layer TVL among L2 networks. With $5.96B in assets, Arbitrum dominates 65.68% of the L2 market.

L2 TVL was at an all-time high of $9.288 billion on April 6 after surpassing its previous ceiling of $7.5 billion on March 24. This coincided with the launch of ZkSync Era, which has since garnered $173 million worth of assets.

Optimism ($OP) has a market cap of $699.139 billion and is currently trading at $2.22, down 2.29% in 24 hours.

‍What is Optimism:

Optimism was established in 2019 by a team of Ethereum developers and operated as an L2 blockchain that leverages optimistic rollups to process transactions in batches. This technology offers users cost-effective and almost instantaneous transactions. Optimism is also a reliable, scalable, and secure platform for developers seeking to create Ethereum applications quickly.

#op #optimism #crypto2023 #Binance #crypto