Introduction
Multiple sources have confirmed that Onyx Protocol, a decentralized finance (defi) platform, has experienced a security breach, leading to a loss of $2.1 million. In the aftermath of the attack, a portion of the stolen crypto assets was quickly transferred to the ether mixing service Tornado Cash.
Onyx Protocol Exposed
On November 1, 2023, the blockchain analysis and security team at Peckshield discovered a suspicious transaction involving Onyx Protocol, a peer-to-peer lending and cross-token liquidity market, and shared it on social media channel X (formerly known as Twitter).
The attackers exploited a "precision loss" bug in combination with a flash loan, successfully draining a significant amount of ETH and ERC20 tokens from the platform. Despite the breach, the platform's native currency, onyxcoin (XCN), experienced only a minor decline of 0.8% following the incident. This decrease is relatively modest compared to the significant impact on crypto assets observed in previous defi hacks.
Impact on Total Value Locked (TVL)
The total value locked (TVL) in the Onyx Protocol decentralized finance project currently stands at $557,253. This marks a drastic drop from the previous day's level of $2.88 million, highlighting the severe consequences of the breach. It is important to note that a portion of the stolen funds, which have now been converted to ethereum (ETH), were funneled into the ether mixing service Tornado Cash.
Conclusion
The Onyx Protocol security breach has resulted in a loss of $2.1 million, with a fraction of the stolen funds being channeled to the ether mixing service Tornado Cash. Despite the attack, the platform's native currency, onyxcoin (XCN), experienced a relatively minor decline in value. However, the significant drop in the total value locked (TVL) emphasizes the impact of the breach on the decentralized finance project.
What are your thoughts on the Onyx Protocol hack? Share your opinions in the comments section below.
Frequently Asked Questions
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. However, there are also disadvantages to this type of investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
Insurance is necessary if you wish to keep your money safe from the banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit how many ounces you can keep. Some providers allow you to choose your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts provide flexibility for purchasing gold. You can set up futures contracts with a fixed expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does provide coverage for damage from natural disasters, however. Additional coverage may be necessary if you reside in high-risk areas.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs are not covered by insurance. For safekeeping, banks typically charge $25-40 per month.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must retain them for as long and as you require.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. The plan should also include information about how much you are willing to invest each month.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. After reviewing your application, the company will send you a confirmation mail.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner can help you decide the type of IRA that is right for your needs. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Are You Ready to Invest in Gold?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you are unsure of which option to invest in, consider both.
In addition to being a safe investment, gold also offers potential returns. Retirement investors will find gold a worthy investment.
Although most investments promise a fixed rate of return, gold is more volatile than others. Its value fluctuates over time.
This does not mean you shouldn’t invest in gold. It is important to consider the fluctuations when planning your portfolio.
Another benefit to gold is its tangible value. Unlike stocks and bonds, gold is easier to store. It is also easily portable.
As long as you keep your gold in a secure location, you can always access it. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. Gold usually rises when the stock market falls.
Gold investment has another advantage: You can sell it anytime. You can easily liquidate your investment, just as with stocks. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
You shouldn't buy too little at once. Start small, buying only a few ounces. Continue adding more as necessary.
Don't expect to be rich overnight. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Is gold a good choice for an investment IRA?
If you are looking for a way to save money, gold is a great investment. It is also an excellent way to diversify you portfolio. But gold has more to it than meets the eyes.
It has been used throughout history as currency and it is still a very popular method of payment. It's sometimes called “the world's oldest money”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. Because it is rare and difficult to make, it is extremely valuable.
Gold prices fluctuate based on demand and supply. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. This results in gold prices rising.
On the other hand, people will save cash when the economy slows and not spend it. This causes more gold to be produced, which lowers its value.
This is why both individuals as well as businesses can benefit from investing in gold. You will benefit from economic growth if you invest in gold.
In addition to earning interest on your investments, this will allow you to grow your wealth. You won't lose your money if gold prices drop.
Should you open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. You cannot recover any money you have invested. This includes losing all your investments due to theft, fire, flood, etc.
You can protect yourself against such losses by purchasing physical gold and silver coins. These coins have been around for thousands and represent a real asset that can never be lost. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
When you open an account, keep in mind that you won't receive any returns until your retirement. Don't forget the future!
How is gold taxed within an IRA?
The fair market value of gold sold is the basis for tax. When you purchase gold, you don't have to pay any taxes. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
As collateral for loans, gold is possible. Lenders look for the highest return when you borrow against assets. In the case of gold, this usually means selling it. This is not always possible. They may keep it. They may decide to resell it. The bottom line is that you could lose potential profit in any case.
You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
cftc.gov
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. It is essential to save enough money each year in order to maintain a steady growth rate.
You also want to take advantage of tax-free opportunities such as a traditional 401(k), SEP IRA, or SIMPLE IRA. These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
Save regularly and continue to save over time. If you don't contribute the maximum amount, you will miss any tax benefits.
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By: Jamie Redman
Title: Onyx Protocol Security Breach Results in $2.1 Million Loss
Sourced From: news.bitcoin.com/onyx-protocol-suffers-2-1m-loss-in-defi-breach-fraction-of-funds-redirected-to-tornado-cash/
Published Date: Wed, 01 Nov 2023 14:00:25 +0000
Did you miss our previous article…
https://altcoinirareview.com/lawmakers-call-for-doj-to-consider-criminal-charges-against-binance-and-tether/
