Irina Kravchuk: <\/strong>Hi everyone and welcome to a new episode of our AMA series<\/p>\n\n\n\n noke: <\/strong>Everyone grab your popcorn<\/p>\n\n\n\n Irina Kravchuk: 🖖 <\/strong>Hi and welcome<\/p>\n\n\n\n Serg: <\/strong>Hi! Glad to have you here \ud83d\ude42<\/p>\n\n\n\n Irina Kravchuk: <\/strong>It’s showtime 🕶<\/p>\n\n\n\n Serg: <\/strong>You had some difficult times in the past days: good and bad news. We hope we will clarify everything in this AMA<\/p>\n\n\n\n noke: <\/strong>Indeed, the last few days have been quite crazy.<\/p>\n\n\n\n Irina Kravchuk: <\/strong>Thanks for joining @nokeman<\/a> . A lesser project wouldn’t have come to avoid attention.<\/p>\n\n\n\n <\/p>\n\n\n\n Serg: <\/strong>we can start with a question related to that \ud83d\ude42 if you are ready<\/p>\n\n\n\n noke:<\/strong> Sure thing, drop it here – I’m ready for any question \ud83d\ude42<\/p>\n\n\n\n Serg: <\/strong>but only after you tell us a bit about yourself. And the a history behind the project<\/p>\n\n\n\n we want to know the\nbackground \ud83d\ude42<\/p>\n\n\n\n noke: <\/strong>Ah so the history and background of STONK<\/p>\n\n\n\n Serg: <\/strong>If you are comfortable, you can say about yourself as well \ud83d\ude42<\/p>\n\n\n\n noke: <\/strong>Well I’ll start with myself – I’m from New Zealand, and I have a background in cyber security & informatics olympiads.<\/p>\n\n\n\n Serg: <\/strong>white hacker? \ud83d\ude42<\/p>\n\n\n\n noke: <\/strong>You could say that, but most of my time has been involved in participating in capture the flag competitions (CTFs), fun little competitions where you essentially hack things for points on a leaderboard.<\/p>\n\n\n\n Irina Kravchuk: <\/strong>Were you good?<\/p>\n\n\n\n noke: <\/strong>Yes, I’ve achieved quite a few top leaderboard placings\/prizes with my team in and outside of the country, although I can’t release specifics here due to the anonymity aspect of the project. We are completely happy to offer personal & legal details for professional negotiations if needed though.<\/p>\n\n\n\n As for\nblockchain\/cryptocurrency – we’ve mostly been lurkers in the space –\nand it has only been recently when we started considering starting a\nproject.<\/p>\n\n\n\n Irina Kravchuk: <\/strong>Interesting. What made you consider starting a project on blockchain?<\/p>\n\n\n\n After this, we can\nstart with the questions from the community if you’re ready. We have\nplenty of them:grinning:<\/p>\n\n\n\n noke: <\/strong>It was most definitely the recent release of the balancer protocol by the balancer labs that edged us towards creating a project. Their protocol opened huge doors for many, many potential use cases, especially regarding their liquidity balancer pools & how their exchange optimized routing\/trading through them.<\/p>\n\n\n\n Of course – I also\njust wanted to make a token named STONK. These two things combined\npushed me over the edge to create this project \ud83d\ude42<\/p>\n\n\n\n Sure thing, we can\nstart with the questions now.<\/p>\n\n\n\n Q1 from\nT<\/em><\/strong>elgram<\/em><\/strong>\nuser @GoldRocket27<\/em><\/strong><\/p>\n\n\n\n You\nwere recently hacked, but you reacted quickly. What steps are you\ntaking to strengthen your protection? How much attention will you pay\nto the issue of protection in the future?<\/strong><\/p>\n\n\n\n noke: <\/strong>Thanks @GoldRocket27<\/a>, a good question. The hack was regarding the FoT (fee on transfer) function on our old token. To put it simply, FoT burn tokens are non-standard ERC20 tokens that destroy a percentage of your amount on transfer. This, combined with the balancer pool’s gulp function, created an opportunity for an attack vector via flash loan to completely drain all liquidity from our balancer pool.<\/p>\n\n\n\n Irina Kravchuk: <\/strong>Were you aware of this vulnerability? I mean as a potential threat?<\/p>\n\n\n\n noke: <\/strong>No, we were not aware that our deflationary aspect could be exploited this hard, as the gas\/capital required to do so as we initially calculated would have been immense and impractical.<\/p>\n\n\n\n We did know,\nhowever, that the deflationary\/FoT aspect would create arbitrage\nopportunities with our token at the expense of liquidity providers,\npartially due to the balancer pool’s gulp function.<\/p>\n\n\n\n None of us expected\nan attack of this scale via a flash loan though – the balancer labs\nwere equally as surprised when the attack happened on this edge case.<\/p>\n\n\n\n So right after the\nattack happened – it was very confusing for all of us.<\/p>\n\n\n\n Irina Kravchuk: <\/strong>You worked over the working program I guess to solve this:grinning:<\/p>\n\n\n\n noke: <\/strong>Yes –<\/p>\n\n\n\n Initially we did not\nknow what had happened, we didn’t know whether it was a bug with the\nbalancer UI.<\/p>\n\n\n\n However, as the\nminutes passed<\/p>\n\n\n\n – and as the clock\nticked.<\/p>\n\n\n\n And as we looked at the transactions on Etherscan.<\/p>\n\n\n\n We realised exactly\nwhat happened – and it was a complete attack on the balancer pool –\ndraining around 30K of funds.<\/p>\n\n\n\n We knew that this\nwas regarding our token’s non-standard ERC20 fee on transfer\nfunction, so we instantly began a 1:1 snapshot token swap to a token\nthat was a standard ERC20, fully compatible with the balancer pool.<\/p>\n\n\n\n The timeline went\nsomething like this – at around 6-8AM, the attack happened.<\/p>\n\n\n\n (GMT+12)<\/p>\n\n\n\n At around 8-9AM, we\npushed forward the call to begin the 1-1 token swap for the new smart\ncontract.<\/p>\n\n\n\n At 12AM, the\nsnapshot for the token swap began. We captured around 508 holders in\ntotal.<\/p>\n\n\n\n At 12AM-4PM, we\nbegan airdropping the new, patched\/fully compatible token all\nholders, one by one, checking for any malicious addresses in the\nprocess – especially ones involved in the flash loan attack.<\/p>\n\n\n\n During this entire\nperiod we were in full deep contact with coingecko, hotbit, & any\nother website that already supported STONK.<\/p>\n\n\n\n At around 5-6PM,\ncoingecko was updated.<\/p>\n\n\n\n At around 7PM, our\ntrustwallet logo was updated.<\/p>\n\n\n\n At around 7:15PM,\n20-30K of liquidity was added back to uniswap, and trading resumed.<\/p>\n\n\n\n HOTBIT was in\ncontact this whole time, and at 8PM, we were listed officially, on\nschedule, with HOTBIT, with trading beginning on the exchange.<\/p>\n\n\n\n Essentially –\neverything was all back to normal, with the FoT removed, completely\nresolving\/fixing the issue.<\/p>\n\n\n\n Serg:<\/strong> Extremely fast I would say<\/p>\n\n\n\n Irina Kravchuk: <\/strong>Stonk saga<\/p>\n\n\n\n noke:<\/strong> You could say that – a crazy day it was. Now we’re back on track with our plan.<\/p>\n\n\n\n Serg: <\/strong>It’s a story for your grandchildren 😄<\/p>\n\n\n\n Irina Kravchuk: <\/strong>I’m sure you didn’t like the hacking part, but you guys handled it really well. Congrats<\/p>\n\n\n\n noke: <\/strong>One more thing to note – the balancer protocol has been audited multiple times extensively – and this edge case was present in their documentation quite publicly – none of us however, expected this flash loan attack. Q<\/em><\/strong>2<\/em><\/strong>\nfrom T<\/em><\/strong>elgram<\/em><\/strong>\nuser @nandhas<\/em><\/strong><\/p>\n\n\n\n Liquidity\nis paramount to the growth of DeFi. Many DApps require reliable pools\nof liquidity to function. What is the function of $STONK token in\nproviding liquidity?<\/strong><\/p>\n\n\n\n noke: <\/strong>So first of all – before we can answer this question fully. What exactly is STONK? and what does it do?<\/p>\n\n\n\n Once we know this, we can know how STONK will support and provide liquidity.<\/p>\n\n\n\n So essentially while\nwe were looking at the balancer protocol, we knew that there were\nmany undiscovered use cases present, almost everywhere we looked.<\/p>\n\n\n\n One of those use\ncases – opened an opportunity for a new type of token. A token that\nalmost acts like an exchange traded fund, or an index fund, a token\nthat can be pegged to many assets at one time.<\/p>\n\n\n\n So how does STONK\nachieve this? Quite simply, through taking advantage of how the\nbalancer DEX routes different transactions through multiple liquidity\npools to find an optimum slippage rate\/price, constantly rebalancing\npools and creating price pressure on all involved tokens in the\nprocess.<\/p>\n\n\n\n So lets say you want\nto swap ETH -> COMP.<\/p>\n\n\n\n The protocol will\nfind a way to route your transaction through multiple pools on the\nbalancer exchange, to achieve the best slippage\/price.<\/p>\n\n\n\n Serg: <\/strong>So, basically it will help us find the most convenient price<\/p>\n\n\n\n noke: <\/strong>Yes – one second<\/p>\n\n\n\n So this is where\nSTONK comes in – we want to create a set of route-optimized pools\nthat will redirect this transaction THROUGH pools that INCLUDE STONK,\nrebalancing the pool and enacting price pressure on STONK in the\nprocess.<\/p>\n\n\n\n STONK will\nessentially sit in a multitude of reward & route optimized\nliquidity pools, and it will soak in balancing pressure from every\nsingle trade that involves a DeFi token.<\/p>\n\n\n\n This is how it will\nbe pegged, essentially, to a basket of DeFi.<\/p>\n\n\n\n It’s a new kind of\ntoken, and a new kind of fund, and it discovers an undiscovered use\ncase present in DEX liquidity pools.<\/p>\n\n\n\n So – how will STONK\nprovide liquidity?<\/p>\n\n\n\n What are sort of\nincentives to provide liquidity in STONK balancer pools?<\/p>\n\n\n\n First of all, of\ncourse, we have to create the most optimized balancer pools possible\nfor the highest ROI.<\/p>\n\n\n\n Rewards can come in\nthe form of swap fees from trading volume from optimized routing, and\nthey can also come in the form of BAL tokens, provided by balancer\nlabs.<\/p>\n\n\n\n STONK will essentially calculate & create a set of these optimized balancer pools for DeFi, attracting outside liquidity providers, and therefore providing liquidity & supporting projects in the process.<\/p>\n\n\n\n Yes, there are actually some calculations up on https:\/\/pools.fyi<\/a>, although those take into account impermanent loss\/is relatively generalized for all pools. We will provide ROI reports soon once we deploy the first set of STONK DeFi pools.<\/p>\n\n\n\n Q<\/em><\/strong>3<\/em><\/strong>\nfrom T<\/em><\/strong>elgram<\/em><\/strong>\nuser @harl324<\/em><\/strong><\/p>\n\n\n\n Could\nyou elaborate more on the concept of balancer pool? How is it\ninnovative compared to the crypto space?<\/strong><\/p>\n\n\n\n noke: <\/strong>The balancer pool is a new kind of liquidity pool released by balancer labs. It will be utilized by DEX exchanges, namely the balancer exchange, to route transactions through it to find the most optimal price and the lowest slippage\/fees. Essentially, it’s an optimized way to do decentralized trading. Balancer pools will just provide the liquidity in the process.<\/p>\n\n\n\n Q<\/em><\/strong>4<\/em><\/strong>\nfrom T<\/em><\/strong>elgram<\/em><\/strong>\nuser @ineed688btc<\/em><\/strong><\/p>\n\n\n\n STONK\u2019s\nwhite paper is quite tricky for me and for any non-technical user,\nwhich is not helpful for investors who don\u2019t have a lot of\ntechnical background! Do you have simple and basic information about\nthe STONK project that would help to better understand STONK for\nthose users?<\/strong><\/p>\n\n\n\n
This new token is now fully compatible with their protocol, and there should be no more issues.<\/p>\n\n\n\n
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