This security update occurred in the wake of a recent flash loan attack on the Warp Protocol, and was implemented in order to prevent future similar attacks. In return for resecuring Warp, nakamo.to was rewarded with 16,600 Warp Tokens, adding to our token portfolio.
Advanced Blockchain AG’s portfolio company, nakamo.to, has secured Warp Finance’s Warp Protocol in the wake of the recent flash loan attack on the platform. This renewed security was vital in enabling the protocol to relaunch and to continue its original function of providing users with stablecoin loans collateralized by liquidity provisioning (LP) tokens.
Warp Finance solicited the help of nakamo.to for this important security update after a flash loan attack impacted its platform.
Warp Finance’s Warp Protocol is a new decentralized finance (DeFi) project which as recently went live. Unfortunately, it was the subsequent victim of a flash loan attack, an increasingly popular and problematic issue within the industry where flash loans (those that are granted and repaid within a single blockchain block, without the need for any collateral) are used to extract large sums of money from protocols. While the majority of the stolen funds were returned to users, it is important to ensure this does not happen again.
nakamo.to helped Warp make needed security edits, particularly by utilizing Chainlink.
The primary aim of the security review and update performed by nakamo.to was thus to protect the Warp Protocol against similar attacks and malicious behavior occurring in the future. nakamo.to helped Warp make the necessary protective and preventative security changes to the coding of its Warp Protocol while still maintaining its original functionality. Specifically, nakamo.to suggested and facilitated Warp’s use of Chainlink oracles (to replace its previous use of Uniswap oracles) to better calculate the underlying value of the LP tokens and protect against flash loans.
The relaunch of the Warp Protocol will ensure the continued delivery of its innovative purpose to its users.
Warp Finance and its proprietary Warp Protocol provide liquidity provisioning (LP) tokens generated from liquidity mining with a never-before-seen use case, which is to act as collateral for stablecoin loans. The relaunch of the Warp Protocol enables this innovative and beneficial new utility for LP tokens to continue to be an opportunity users can derive value from; Uniswap has $3.77 billion in LP tokens, and Sushiswap has $3.26 billion in LP tokens, as of February 9, 2021. Furthermore, Warp has plans for additional collateralization across second order products, increasing the utility of the protocol.
In exchange for its help in this matter, Warp Finance rewarded nakamo.to with a double-digit allocation of Warp Tokens.
Warp Tokens are the native token of the Warp Protocol, providing both governance and various incentivization functions. These Warp Tokens will join nakamo.to’s already robust portfolio of decentralized finance (DeFi) token holdings.
Further information about Warp Finance, nakamo.to, and Advanced Blockchain AG can be found at their respective websites warp.finance, nakamo.to, and advancedblockchain.com.