Can DeFi Bounce Back? | Sam MacPherson & monetsupply
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Hey, everyone. Quick disclaimer before we get into today's episode. Nothing said on Bell Curve is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and the views expressed by anyone on the show are solely our opinions, not financial advice. Our guests and I may hold positions in the companies, funds, or projects discussed. Alright, everyone. Welcome back to another episode of Bell Curve. Today, I'm joined by Monet Supply and Sam McPherson of Spark and ExcellenceDAO. Welcome. Welcome to this program.
Yeah. Thanks for having us.
It's been a week. It's been a week. But, obviously we're going to be talking about the, honestly, probably talking a lot about the Kelp DAO slash Aave situation that's unfolding in real time. But also wanted to just take this opportunity to kind of set the stage and talk about DeFi as a whole here, because it's been a tough month, tough at least last thirty days or so. There's been about $500,000,000 in hacks, mostly between, the Keltdown situation and Drift. So let's focus on the Keltdown, like what actually happened here? Because it seems like the sophistication of these attacks are getting
Yeah. So you're, you're absolutely right, Mike, that, North Korea is really upping its game. The sophistication of these attacks is getting quite alarming, starting with the Drift HAC and now this RSE one, as the postmortems have come out, we've learned how deep these penetrations are into these organizations. So yeah, just a quick overview of what happened with the RSEET exploit. So what happened is that there is a bridging mechanism for RSEET to go to other chains. This is called a lock and mint bridge. So basically the RSEET is natively issued on Ethereum. And so if you want to go to anothe
Okay. So I'm gonna follow-up here with the obvious and maybe naive question that I feel like everyone's asking, which is why is there so much money being secured by very small multisigs essentially. Also how difficult would it be to implement something like rate limits? This has been something that's been discussed for a while. I also know in the theme of say on the show a lot that Cosmos was kind of got everything right here. And I know that protocols like Osmosis actually did this. They, they, you know, the amount that you could bridge out of that protocol many years ago, but maybe it's more
So I've I've heard, at least from like, you know, public posts from different projects who are using various bridge infrastructure, maybe layer zero OFTs and such, that they've you know, people have implemented, manual kind of like rate limits. So, I think that's, you know, in hindsight, that's a security feature that clearly should have been in place. You know, it's like a, it's an inconvenience, for users in some cases if you wanna bridge large amounts, but the risk reward of rate limiting is definitely very good. I think like one example, a guy from Athena was mentioning that they have a, l
And is the reason to use a one of one in this instance, just as simple as convenience? I mean, is that kind of the answer?
I think we're, we're sort of this is like up for the data. We're like learning what the reasoning might've been, but what people, what I've seen someone suggest is that it might've been like kind of the default configuration when you're setting up, like layer zero bridging infrastructure. So like, if you just click through or like, you know, follow the docs or whatever with the default, you're gonna end up with one of one. So, you know, they should have been familiar with the infrastructur
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