Ortomich

Hello Twitter! Here is a brief explanation of who I am x.com/i/article/2087…

stablecoin holders can't earn yield, by law. the issuer can. and WLFI just showed where it goes

what happened
- WLFI announced a buyback of its own governance token
- funding "may include fees earned from USD1 reserves"
- the goal is to consolidate voting power among long-term holders

so the loop looks like this
- you hold USD1, your dollars sit in t-bills
- the t-bill yield buys WLFI
- WLFI voting power goes to whoever stakes the longest
- you get 0, because the GENIUS Act says issuers can't pay you

and to keep you holding, USD1 holders get paid in... WLFI. binance campaign: 120M WLFI pool + up to 2.5M USD1, extended till nov 27

numbers
- USD1 supply ~$3.46B, -11% in 7d, -22% in 30d
- even at 3% that's ~$100M/yr of reserve yield
- WLFI staking rewards: 55K USD1 for 82M staked WLFI
- WLFI ~$0.046

BUT
this isn't only a WLFI thing. tether and circle earn the same yield, they just keep it instead of buying a token. so the real question: if the law forbids sharing yield with holders, who decides what it's spent on? right now only the issuer. imho a buyback is at least visible onchain, unlike a corporate bank account

in the end stablecoins are the best business in crypto, and holders are the product

would you hold a stable whose yield buys a governance token you don't own?

#USD1 #WLFI #Stablecoins #DeFi

citadel and cboe went to court to stop stock perps in the US. the judge said no

what happened
- nov 3 the CFTC allowed perps on single US stocks on registered exchanges. first time ever
- 4 venues got the green light: kalshi, coinbase derivatives, bitnomial (kraken) and nadex
- same day citadel securities and cboe sued the CFTC - their argument: these are swaps, not futures, so they belong to the SEC
- nov 4 judge valerie caproni denied the emergency request to block them. trading continues
- coinbase already filed 15% minimum margin - ~6.6x leverage on nvda, tsla, aapl, 24/7

why citadel cares
the lawsuit is about jurisdiction on paper. imho it's about order flow. today retail buys stocks through apps, and market makers like citadel sit in the middle. a perp on a CFTC exchange doesn't need them - it trades 24/7, funding replaces the spread, and the order flow goes somewhere else

a week ago ICE (NYSE owner) announced it will bring hyperliquid-based perps to the US. now citadel is suing to stop them. wall street is not against perps - it's against perps it doesn't control

BUT
regulated stock perps won't kill onchain perps. 6.6x with KYC on coinbase vs way more leverage and no KYC on hyperliquid - it's two different users. what changes is legitimacy: the "perps are a degen casino" argument just lost in federal court

and the case isn't over - this was only the emergency request. the main fight about swaps vs futures is still ahead

in the end wall street spent decades calling crypto perps a casino. now they're suing over who gets to run the casino 🥸

would u trade nvda perps on coinbase, or stay on hyperliquid?

#StockPerps #CFTC #Citadel #Hyperliquid

hackers found the best way to cash out in defi. they don't sell - they borrow on aave

think about it. u just stole $60M in USDT. selling it on a DEX means hitting pools, moving the price, feeding MEV bots and leaving a trail across 20 swaps. and tether can freeze it any minute

so instead:
1. supply the stolen tokens on aave as collateral
2. borrow ETH against them to the max
3. walk away and never repay

one tx. no slippage, no price impact, oracle price. the loan IS the exit. the collateral left on aave is just the fee for laundering

binance hack, last week
- tether and circle were freezing stolen stables
- 40 min before aave froze markets, one exploiter wallet supplied 60M USDT
- borrowed 19,762 ETH (~$44.6M) and left
- 60M of freezable USDT turned into ~$44.6M of ETH nobody can freeze

and it's not the first time. in april another attacker did the supplied ~$221M on aave, borrowed ~$191M in ETH, health factor1.01
why it works aave is the deepest pool in defi and it doesn't care who u are. ending market. for a hacker it's an OTC desk with no KYC, noslippage and instant settlement in the one asset that can't be frozen
BUT aave can't tell a hacker from a whale. the only defense right noafter the fact - which they did, and suppliers rushed out,utilization hit 92-100%
the fix on the forum is rate limits - fresh big collateral unlocks borrowing power over time. fluid already works like this. but every limit that slows a hacker also slows every honest whale

in the end the biggest laundromat in defi is not a mixer. it's aactly as designed 🥸

should lending protocols slow down fresh collateral, or is permi exactly this?

#Aave #DeFi #CryptoHack #Ethereum

binance just lost $5.6B - the biggest hack in crypto history, almost 4x bybit

and the market? btc -4%, eth -4.6%, bnb -8%. when ftx died btc dropped ~25% in a week. today a $5.6B hole looks like a normal tuesday

how it happened
a normal wallet can only do one thing - send transactions that its owner signs. every transfer needs a new signature

eip-7702 (shipped in pectra) changed that. now a wallet can sign one "authorization" that says "from now on, run this code". after that, whoever calls the wallet triggers that code

so the attacker:
1. deployed a contract with one function - send everything to me
2. got an authorization signed for binance's hot wallet pointing to that contract
3. called the wallet. it swept itself - 167K ETH, 1.6B USDT and 60+ tokens in one tx

no bug in a contract, no stolen tx. one signature turned binance's wallet into the attacker's wallet

the only real question left - how did they get binance's hot wallet to sign it? they didn't even know the wallet's current nonce, so they sent 50 authorizations for 50 nonces at once and 1 landed. so either someone at binance signed what they shouldn't, or the attacker could make binance's signer sign whatever they wanted. both are scary

freezes
$2.54B is already frozen, ~45%. almost all of it is USDT and USDC - tether and circle can freeze any address. the ETH and BTC are just gone

in the end crypto's biggest hack got half-fixed by the most centralized thing in crypto, and the market shrugged. we're either very mature or very numb 🥸

would u keep funds on a cex after this?

#Binance #CryptoHack #EIP7702 #Ethereum