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Ryan Sean Adams

πŸ‘€ Speaker
4484 total appearances

Appearances Over Time

Podcast Appearances

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

I mean, that shouldn't have been the default configuration.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

There were some security issues with respect to that.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

So there's a set of things that layer zero could have done differently.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Yeah.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

KelpDAO, to your point, I suppose they shouldn't have configured things and trusted Layer Zero in the way that they did without really investigating, okay, how could this bridge fail and in what ways?

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Because ultimately, it's their customers that were affected, all of the RSE holders.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

And then I guess on the Aave side, they let this collateral into their global shared risk platform for all collateral.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

So they looked at RSE and they didn't discount it from a risk perspective in the way maybe they should have.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Maybe they let too much in, for instance.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Maybe they didn't assign a risk profile that would say like, okay, this is significantly more risky because we've daisy chained all of these

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

different bridges and layer twos together, it's more risky than just plain old vanilla wrapped ETH, which is what a lot of their depositors actually, you know, have is wrapped ETH.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

So Aave should have risk assessed this more.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Layer zero should have had more security, better defaults, particularly with this amount of money.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

KelpDAO shouldn't have used layer zero in this way.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Is that roughly fair in terms of Odysseus where you design the detailed blame here?

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

There's another party that maybe we can assign some blame, or maybe this is a system or structure problem.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Odysseus, you just mentioned that so many of these are bridge hacks.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

And the thing that we just saw this week was yet another bridge hack.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Maybe it's a fault of the architecture and the system that we've built on top of DeFi and Ethereum that we have to depend on all of these bridges in the first place.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

And you could say, and I've seen some make this argument that this is downstream a result of the Layer 2 roadmap, for instance, where...