Jacky Huang's Blog

This article is also published in my linkedin: https://www.linkedin.com/pulse/wbtc-bitcoin-killer-after-collapse-ftx-3ac-jacky-huang/ What is BITGO? BITGO was founded in 2013 by Mike Belshe, who was impressed by the Bitcoin technology and emerging crypto market. Today, Bitgo is the leading company in digital asset security, custody, and liquidity, serving more than 1,500 institutional clients in 50+ countries. What is wBTC? Bitcoin has its own network and ecosystem. It was originally not connected to the Ethereum ecosystem. Wrapped Bitcoin (wBTC) was launched by Bitgo in January 2019 ; it is an Ethereum-network token that is backed 1:1 by Bitcoin. It allows users to interact with different Ethereum Dapps and the DEF system. In short, wBTC is the mirror of BTC in Ethereum network, accounting for 83.27% of total BTC on the Ethereum network.  Connection between Bitgo and Alameda Research Alameda Research and FTX has been filed bankruptcy. According to Bitgo's official website, BitGo

  A genius trader( 0x8d...217 ) gains 15.5 million worth of BUSD while  Ankr Exploiter hacked and dumped aBNBc . Here's how he did:  the trader bought 183,884.92 $aBNBc with 10 $BNB via 1 inch ;   exchanged 183,884.92 $aBNBc to 191,130.04 $hBNB via Helio protocol ($hBNB is the BNB collateral in Helio); Used 191,130.04 $hBNB to borrow 16,444,740.14 (16.4 million) $HAY on Helio, which is a Stablecoin issued by Helio ; Go back to 1 inch and swapped 16,444,740 $HAY for 15,504,986 (15.5 million) $BUSD. You may ask again: how did the trader gain $15.5 million from the above steps? Normally, the price of $BNB should be pegged at a 1:1 ratio to the price of $aBNBc.Traders will arbitrage when there is a price difference. This time, $aBNBc has completely de-pegged from $BNB. Therefore, he could buy 183.8K $aBNBc with only 10 $BNB. Then, the problem falls on the Oracle of Helio Protocol.  Oracles are used to provide price data streamed on the blockchain.  Oracles bridge the off-chain world w