I think this is a good news to read, I thought DeFi was only full of scam before, but this news also shows how DeFi is less private than people think. I do read about DeFi scam almost weekly, and yet people still want to take their own shares and invest to get active income which can possibly lead to scam. In my opinion, there is nothing so different between ICO and DeFi in terms of scam, and DeFi has less privacy. To prove this, it is clear in the quote below
The Lidless Eye and Onchain Transactions
https://news.bitcoin.com/exploits-and-flash-loans-are-just-the-beginning-defi-economy-less-private-than-people-think/Moreover, a few days beforehand, the Twitter handle @n2ckchong (Nick C) shared an interesting perspective of how much of the defi world can be seen onchain.
“What’s beautiful (and kind of scary) about defi is that we can see everything that happens on-chain and connect addresses to identities and firms,” Nick C tweeted on Wednesday. In the Twitter thread, Nick C shows a breakdown of ether addresses stemming from Three Arrows Capital (3AC), Jump Trading, and Polychain Capital. The first tweet alleges that 3AC is one of “the biggest Compound suppliers” and also notes 3AC has $100M in WBTC, $50M in ETH, and $6M in the stablecoin DAI. “3AC is also supplying 275 YFI and $13M in LINK to Aave and is farming SUSHI with 1.5M recently-acquired SUSHI,” Nick C said. “3AC [also] acquired 351k LINK during [the] recent dip,” he added. In another tweet, Nick C breaks down some ostensible estimates from Polychain Capital’s defi action.
“Polychain Capital has been the biggest YFI buyer over the past few weeks,” he further wrote. “They’ve acquired 570 YFI (~2% total supply) over the past five weeks at an estimated cost basis of $12~14k. They also own 48,000 ETH and 1,315 MKR on this address,” Nick C detailed. The Twitter thread also gives a breakdown of Jump Trading’s defi action as well as Nick C notes that Jump Trading is “a massive prop trading firm based in Chicago.” The researcher continued by adding:
[Jump Trading] are big investors in Ethereum tokens as well.
Nick C’s insights earned him a great number of Twitter followers after he shared his thoughts about the three firms and the defi action. After publishing the thread, Nick C got a few thousand followers and he said he “would continue posting high-signal content when I have the time.”
The perspective Nick C shared on Wednesday shows how the defi economy displays highly visible content onchain, and it’s a lot less private than most people think.