Radiant Capital Loses $4.5 Million in Digital Assets After Flash Loan Attack

Radiant Capital Falls Victim to Flash Loan Attack

Radiant Capital, a decentralized finance (defi) platform, has confirmed that it fell victim to a flash loan attack on January 2, 2023. The attack resulted in the protocol incurring bad debt in the WETH market, amounting to approximately 1.3% of the total protocol TVL. This translates to a loss of $4.5 million in digital assets. The platform is urging the hackers responsible for the attack to establish contact before involving law enforcement.

All Markets on Arbitrum Paused

Following the flash loan attack, Radiant Capital has taken precautionary measures by pausing all markets on Arbitrum. This decision was made by the Radiant Decentralized Autonomous Organization (DAO) Council. An investigation into the incident is currently underway to determine the root cause of the attack and prevent similar incidents in the future.

Radiant Capital's Solvency and User Protection

Despite the attack, Radiant Capital assures its users that the protocol remains solvent. The platform is actively working on a remediation plan to address the bad debt and fully capitalize the protocol. This plan will also ensure that affected users regain full access to their deposits. Additionally, Radiant Capital is implementing measures to protect users at risk of liquidation during the pause period, ensuring fair treatment for all.

Contacting the Attackers

Radiant Capital sends a message to the hackers behind the attack, urging them to establish contact with the platform. They seek a resolution to the situation without involving law enforcement. The platform also expresses its intention to lift the pause on user accounts within the next 24 hours, providing relief to affected users.

In conclusion, Radiant Capital's recent flash loan attack has resulted in a significant loss of digital assets. However, the platform remains solvent and is taking proactive steps to address the issue and protect its users. The investigation into the attack is ongoing, and Radiant Capital hopes for a swift resolution to the situation.

Frequently Asked Questions

What precious metal should I invest in?

Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if you need a quick profit, gold may not be for you. If you have time and patience, you should consider investing in silver instead.

If you don’t want to be rich fast, gold might be the right choice. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.

How much of your portfolio should you hold in precious metals

First, let's define precious metals to answer the question. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them extremely valuable for trading and investing. Gold is by far the most common precious metal traded today.

There are however many other types, including silver, and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also relatively unaffected both by inflation and deflation.

In general, all precious metals have a tendency to go up with the market. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.

In contrast, when the economy is strong, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. Because they are rare, they become more pricey and lose value.

It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.

What is a Precious Metal IRA?

An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. They are great investments for your money, and they can protect you from inflation or economic instability.

Precious metals often refer to themselves as “bullion.” Bullion refers actually to the metal.

Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.

With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This ensures that you will receive dividends each and every year.

Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you only pay a small percentage on your gains. You can also access your funds whenever it suits you.

What is the tax on gold in Roth IRAs?

An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.

The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.

Each state has its own rules regarding these accounts. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you up to April 1st. New York has a maximum age limit of 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.

What are the pros and disadvantages of a gold IRA

The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. There are some disadvantages to this investment.

You may lose all your accumulated savings if you take too much out of your IRA. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. 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 will be required if you would like to keep your cash out of banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.

If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit how many ounces you can keep. Some providers allow you to choose your weight.

You'll also need to decide whether to buy physical gold or futures contracts. Gold futures contracts are more expensive than physical gold. Futures contracts allow you to buy gold with more flexibility. You can set up futures contracts with a fixed expiration date.

It is also important to choose the type of insurance coverage that you need. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. However, it does cover damage caused by natural disasters. Additional coverage may be necessary if you reside in high-risk areas.

You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.

To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians can't sell assets. Instead, they must maintain them for as long a time as you request.

Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Also, you should specify how much each month you plan to invest.

After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. After reviewing your application, the company will send you a confirmation mail.

Consider consulting a financial advisor when opening a golden IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.

What Should Your IRA Include in Precious Metals?

It's important to understand that precious metals aren't only for wealthy people. They don't require you to be wealthy to invest in them. There are many methods to make money off of silver and gold investments.

You might also be interested in buying physical coins, such bullion rounds or bars. Shares in precious metals-producing companies could be an option. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.

You can still get benefits from precious metals regardless of what choice you make. They offer the potential for long-term, sustainable growth even though they aren’t stocks.

And, unlike traditional investments, their prices tend to rise over time. You'll probably make more money if your investment is sold down the line than traditional investments.

Statistics

This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
(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)
Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)

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How To

Investing gold vs. stocks

Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because many people believe that gold investment is no longer profitable. This belief is based on the fact that gold prices are being driven down by global economic conditions. People believe that investing in gold would result in them losing money. In reality, however, there are still significant benefits that you can get when investing in gold. We'll be looking at some of these benefits below.

One of the oldest currencies known to man is gold. Its use can be traced back to thousands of years ago. It is a valuable store of value that has been used by many people throughout the world. It continues to be used in South Africa, as a way of paying their citizens.

Consider the price per gram when you decide whether you should invest in or not. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.

It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. So, although gold prices have declined in recent years, the cost of producing it has not changed.

It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. It is sensible to avoid buying gold if you are only looking to cover the wedding rings. This is not a wise decision if you're looking to invest in long-term assets. Selling your gold at a higher value than what you bought can help you make money.

We hope this article helped you to gain a better appreciation of gold as a tool for investment. We strongly recommend that you research all available options before making any decisions. Only then can you make informed decisions.

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By: Terence Zimwara
Title: Radiant Capital Loses $4.5 Million in Digital Assets After Flash Loan Attack
Sourced From: news.bitcoin.com/defi-platform-radiant-capital-loses-digital-assets-worth-4-5-million-after-flash-loan-attack/
Published Date: Thu, 04 Jan 2024 09:30:51 +0000

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