The Macalinao brothers, who founded the Saber Stable Coin Protocol (SBR), allegedly used fake developer profiles to fake Total Value Locked (TVL) on Solana’s DeFi (SOL). In fact, Ian McAllenow had created several protocols used in coexistence with Saber, pretending to be 11 different developers.
The McCallinaw brothers faked Solana’s TVL thanks to Saber
Our colleagues from CoinDesk conducted an investigation in which they revealed that the main developer of the protocol Saber (SBR) Using fake profiles to misrepresent the locked total value Sunshine (Sun). That’s why he would work under 11 Nickname, in order to impersonate different developers. In doing so, he created other protocols to entangle with Saber.
The developer in question is Ian Macalinao, who created Saber with his brother Dylan. This protocol focuses on exchange stablecoins And at its peak like with Sunny Aggregator (SUNNY) $7.5 billion of Solana’s $10.5 billion production Selon currency office.
Sunny is actually another application for decentralized finance (DeFi) built by Ian McAlinau. This is used in Saber Integration TVL was valued at $3.4 billion within two weeks of its existence. The chart below helps to understand how the locked value is distorted on Solana’s DeFi thanks to Saber:
Diagram of the interaction between two DeFi applications
Let’s imagine that a user deposits $1,000 into Protocol A. By doing so, he will be provided with tokens Represents evidence of deposit. The applications can then improve the perceived return by encouraging investors to come and deposit LP tokens with them.
In this example, we end up with $1,000 on Protocol A and another $1,000 on Protocol B, when there was none Only one original contribution.
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The principle described above is not a secret in itself and is common to all decentralized finance in general. In fact, it is common for a new application to appear in the market Another improvementwhich creates a file Protocol Overlay.
The difference here is that it was knowingly done for a purpose manipulation of statistics. High TVL is indeed one of the criteria to watch in choosing his investments. It is said that Ian McAlinau described the process as Blog post that have not been published before:
“I designed Solana’s TVL maximization scheme: I’m going to build protocols that stack on top of each other, so that the dollar can be counted multiple times. […] If the same team built every protocol, TVL would be a stupid metric. Thus, you create more anonymous profiles. […] I wanted to give the impression that a lot of people rely on our protocol […]. »
This revelation leads to serious reflections on drifts that can interfere with decentralized finance. These are items to keep in mind if you are interested in a bullish correlation protocol. Too fast, too high.
These allegations are considered even more serious, as Cashio (CASH), a stablecoin project that has been the victim of a tune hack 52 million dollars Last March, he was also part of the process.
At the moment, the two brothers seem to be interested in that The emerging ecosystem of AptosAccording to Dylan Macalinao’s Twitter profile. This story should now challenge us as investors, in order to encourage digging Always more in our search.
👉 Also in the news – The NEAR protocol reveals that some of its user data was leaked last June
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source : CoinDesk
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I shyly discovered the world of blockchain at the end of 2018 while searching for financial freedom. At first, I invested moderately, and after only two years, I took the risk of betting everything on the movement that was taking shape at the time. Then I dedicate 2021 to better train myself to gain more knowledge and earnestness. As I like to say often: I still have a billion things to learn. And what I know, I want to share with you.
Vincent Mayor
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