Polygon Covertly Patched $20B Vulnerability

PLUS: ALGO soars on Algorand's incentives, Mexico's CBDC and more |

The biggest crypto news and ideas of the day  Dec. 30, 2021 If you were forwarded this newsletter and would like to receive it, sign up here. Sponsored by     Welcome to The Node.   Questions? Feedback? We'd love to hear from you! Simply reply to this email.   –Daniel Kuhn Today's must-reads Top Shelf HARD FORK HARD KNOCKS: A hacker who helped Polygon avert a multibillion-dollar disaster in early December won a $2.2 million bug bounty, the blockchain network said Wednesday. The so-called "white hat," known as "Leon Spacewalker" on Twitter and GitHub, reported an exploit in a critical Polygon smart contract that held more than 9 billion MATIC tokens on Dec. 3, then worth around $20.2 billion. Although core developers rushed a fix by Dec. 5, some community members have criticized the lack of transparency regarding the hard fork needed to address the vulnerability.    DIGITAL DINERO: The Central Bank of Mexico (Banxico) plans to launch a CBDC by 2024, the Mexican government confirmed in a tweet on Wednesday evening. Banxico joins the central banks of Brazil and Peru in Latin American countries developing a CBDC. Referring to the digital currency as "state-of-the-art payment infrastructure," a Banxico official said a CBDC might improve "financial inclusion" in the 15th-largest economy in the world.   MACRO STRATEGY: MicroStrategy (Nasdaq: MSTR), the business-intelligence software company that's taken to accumulating bitcoin, said it bought another 1,914 bitcoins between Dec. 9 and Wednesday for about $94.2 million in cash. The company paid an average price of $49,229 per bitcoin, it said in a statement, increasing its stockpile to 124,391 BTC. It raised funds for the purchase by selling shares.   TOKEN INCENTIVES: Tokens of Algorand (ALGO) have added as much as 10% in the past 24 hours, becoming one of the few gainers on Thursday morning as the broader crypto market extended its decline. The move came hours after the Algorand Foundation, which oversees development on Algorand, announced a $3 million incentive program for Algofi, a DeFi lending platform backed by Union Square Ventures, Arrington XRP Capital and others. DECENTRALAND BALL DROP: Jamestown, the owner of One Times Square, is recreating the 26-story tower at the heart of New York's New Year's Eve ball drop in Decentraland. The company announced the plan Wednesday as a partnership with Digital Currency Group (DCG), the longtime Decentraland backer with major holdings in the platform's MANA and LAND tokens. (DCG is the parent company of an editorially independent CoinDesk, which will be at the event.) The celebration, dubbed "MetaFest 2022," will include non-fungible token (NFT) art galleries, rooftop VIP lounges and virtual music performances. A message from Nexo When it comes to buying, borrowing or earning on your crypto, you won't find and easier, safer way to do it than Nexo. Right now you can earn $25 worth of Bitcoin for each friend you refer. And the best part is that your referral gets $25 in BTC too! How it works? It's quite simple – sign in to your Nexo account, copy your unique link and start referring like your life depended on it!   And here's what'll happen next: you and your referrals will both get $25 in BTC within 30 days of them passing Advanced Verification and topping up the equivalent of $100 or more of any asset supported on the Nexo platform.   There's no limit on the number of people you can refer, so invite as many friends as you'd like! Join Nexo and start earning free BTC with your friends! What others are writing... Off-Chain Signals BlockbusterDAO Wants to Raise $5 Million in NFT Sales to Buy the Defunct Video Brand (Decrypt) The world's largest crypto exchange Binance is trying to woo France (CNBC) All you should know about Astroport–AMM built to become Terra ecosystem's DeFi liquidity hub (Crypto Slate) Bullish Bitcoin events that helped push it to record highs this year (Protos) A message from Horizen Happy Holidays from the Horizen Team! Join our holiday giveaway to win some $ZEN!   Horizen is the zero-knowledge network of blockchains powered by the largest and most decentralized node system. Its blockchain deployment protocol, Zendoo, is live on mainnet as of Dec. 1st, 2021!     Zendoo enables developers and businesses to deploy private and public blockchains with unmet scalability, flexibility, and throughput to support any real-world needs. Sponsored Content   Qilin: Deriving High Yields From Decentralized Derivative Markets   As price volatility of many of the major crypto coins and tokens has increased in the second half of this year, many market participants are shifting their focus from price to yield. Decentralized derivative markets and derivative liquidity pools are fast emerging as ways to generate superior yields than basic lending and swaps within decentralized finance (DeFi).   This can be seen by the results of the testnet that Qilin Protocol ran from Nov. 16 to Dec. 7 this year. During this period, over 800 unique addresses provided $650 million accumulated volume from five perpetual pools. This generated an average, non-inflationary pool annual percentage yield (APY) of 33.8% and a gross profit of over $16 million. The Chaser... The Node A newsletter from CoinDesk Were you forwarded this newsletter? Sign up here. See Previous Editions Copyright © 2021 CoinDesk, All rights reserved.  250 Park Avenue South New York, NY 10003, USA Manage your newsletter subscriptions  |  Unsubscribe from all CoinDesk email