After much deliberation and careful thought Neptune Mutual decided to close the cover marketplaces.
After much deliberation and careful thought Neptune Mutual decided to close the cover marketplaces. Below the reasons for the decision as well as what it means for the community.
The marketplaces will be closed using an emergency withdrawal process whereby the liquidity provided to cover pools by LPs will be returned to the wallet addresses from which the liquidity was supplied. In addition to protecting cover pool LPs, there will also be refunds to all cover policy purchasers with an existing and valid policy who have paid over 10 USD in policy fees in one transaction.
For veNPM holders, please fill out this form to receive a refund for your veNPM to NPM conversion penalty.
From the end of June there will no longer be NPM emission incentives for LPs i.e. Epoch 3 of the liquidity gauge emissions will be canceled.
Unused funds raised from financial backers will be returned to those backers; this includes DEX liquidity that has now been removed from SushiSwap and Uniswap. A small amount of liquidity on SushiSwap Arbitrum has been left to enable a minimum amount of NPM trading.
The protocol will be open sourced, and become a true public good. Enabling the community to fork the code developed by the Neptune Mutual team such that others might use the existing resources to further our mission to make the blockchain space better protected against smart contracts and other risks.
There are numerous factors that have led to this difficult decision, some of which are external factors which are uncontrollable or unforeseeable. A few factors summarized below:
“Given Neptune Mutual’s Tier 1 backers, why have you not listed on a top CEX?”
This is perhaps one of the most frequently asked questions. In short, the answer is that for a variety of reasons Neptune Mutual was not able to achieve the diverse set of performance metrics (community size and engagement, marketplace user activity, DEX 24 hour trading volume, TVL growth etc.) required to list on top tier CEX. The CEXs that are prepared to list NPM token do not have the depth of liquidity or breadth of user-base to offer good prospects for NPM tokenholders.
“Why has Neptune Mutual not achieved strong growth?”
It is tempting to take a shortcut to answer this question by pointing a finger at one specific factor, but the reality is that there are many contributing factors. A few summarized below:
Since the outset of engaging with the community we have endeavored to highlight the need for DeFiInsurance; Neptune Mutual built a comprehensive dataset of on-chain hacks available, anywhere, and each week we highlight the many millions of dollars that are stolen as a result of smart contract hacks. Despite this, we have consistently been confronted by projects unwilling to spin up cover pools in our marketplace because of the sentiment that audits of their code are sufficient to persuade their community that their protocol is safe. Less than 0.3% of all digital assets are protected with some form of DeFiInsurance, and yet despite all the media reports of hacks, the conference discussions about the importance of governance or CEX proof-of-reserves, it continues to be the case that it is extremely difficult to get media attention to focus on the need for a fast and efficient means of mitigating smart contract risk.
A variety of approaches have been taken by different DeFiInsurance protocols to address this, from attending multiple conferences throughout the year and significant marketing spend, to the leaner approach that Neptune Mutual took (in part as a result of the bear market in 2023). What can be said is that no DeFiInsurance protocol has managed to achieve significant growth over the last 18 months, sadly the overall TVL of the sector has shrunk a lot.
For all the reasons above, at this moment the best course of action is no longer to double-down on investing in growth, but rather to refund unused capital and close the marketplaces.
The consequences are very tough for the Neptune Mutual team who have spent the past 3 years of their time on the mission to facilitate safer environments within DeFi. The team has delivered products according to the roadmap and the fact that the protocol was never hacked, despite attempts being made on the darkweb, is testament to the expertise, passion and absolute focus on security. The team survived the FTX and UST crisis unscathed, and believed that the continued growth in hacks would lead to growth in the demand for a good solution to mitigate these risks, but sadly, as can be seen right across the DeFiInsurance category, this is not yet in sight. So we would like to thank the team for all the dedication, skill and passion invested into the Neptune Mutual project since the outset.
The team will open source the protocol, including blockchain indexing protocol (subgraph alternative), frontend, middleware, database, and backend code, to make it a true public good. This will allow anyone to fork the code and create covers by defining parameters and premium ranges, potentially leading to innovative covers and organic usage.
The Discord channel will be closed to reduce the risk of phishing and other types of cyber attack, any questions / queries will be responded to in the Telegram channel.
We want to take this final opportunity to thank you all for your support.
Neptune Mutual will contact only its financial backers, with whom a signed agreement exists, in relation to next steps (i.e. holding NPM tokens does not qualify you for any form of refund). Contact will be made only from a neptunemutual.com domain email address so please check the source of any email you may receive very carefully. Please ignore any messages from any other email or social media accounts in relation to token/cash refunds.
Learn about EtherHiding, an attack on Web2 platforms by the use of BNB Smart Chain.
Blockchain technology, often hailed for its robust security features, has its own risks and vulnerabilities. However, the narrative takes an intriguing twist when the inherent features of blockchain are manipulated to orchestrate threats in the realm of Web2. This brings us to the forefront of a new and sophisticated cyber threat known as "EtherHiding."
In this article, we delve deep into the mechanics and implications of EtherHiding. This cyber threat involves merging the advanced capabilities of blockchain technology with the vulnerabilities of traditional web platforms. EtherHiding is a testament to how malicious actors can twist emerging technologies to create threats.
Let’s unravel the intricacies of EtherHiding, dissect its technical underpinnings, and discuss the broader implications of this cyber threat.
Guardio Labs, a cyber security-focused company, shared a report on October 15, 2023, explaining EtherHiding. As per the report, the attack leverages the unique properties of smart contracts in the BNB chain, turning them into trojan horses that infiltrate unsuspecting systems. But how does this sophisticated attack unfold?
The process begins with the compromise of WordPress websites, a popular target given their widespread use and inherent vulnerabilities. Attackers inject malicious code into these websites. But instead of hosting this malware directly on the servers, they ingeniously retrieve partial payloads from BNB smart contracts. These contracts, known for their transparency and immutability, are exploited to serve as anonymous and free hosting platforms for malicious payloads.
🚨 Guardio Labs exposes "EtherHiding" - a new threat hiding in Binance's Smart Chain, a technique that evades detection, targeting compromised WordPress sites. Read about this game-changing method! @BNBCHAIN#BNBChain#CyberSecurityhttps://t.co/alNI5KqKUO
What makes EtherHiding particularly daunting is its dynamic nature. The attacks are not static; they evolve and adapt. One of the most prevalent forms of this attack is the distribution of fake browser updates. Victims are lured to a fabricated landing page, where they are prompted to download updates. However, these updates are nothing but malware in disguise, leading to full site spoils and further propagation of the malicious code.
Previously, attackers would host malicious code directly on compromised servers or use traditional hosting services, which, while effective, left a trail that security experts could trace and mitigate. With EtherHiding, attackers have found a new haven in BSC contracts. These contracts, designed for transparency and security in the blockchain realm, are repurposed as anonymous vessels for hosting malicious payloads.
Traditional methods of taking down malicious websites or servers become ineffective when the malicious code resides in a BSC smart contract. These contracts operate autonomously, making the detection and mitigation of such attacks a daunting task for security professionals.
Working of EtherHiding Explained [Image Source: Guardio Labs]
A notable manifestation of the EtherHiding threat is the "ClearFake'' campaign. Attackers inject concealed JavaScript code into these compromised sites, effectively turning them into launchpads for further malicious activities. The initial code retrieves a second-stage payload from a server controlled by the attackers. This payload is responsible for the rest of the site’s sabotage, displaying a highly convincing overlay that demands a browser update. However, this "update" is a fake designed to infiltrate the victim's system with information-stealing malware.
In the progression of the ClearFake campaign, attackers demonstrated adaptability and resilience. Initially, the second-stage code would be hosted on Cloudflare worker hosts, leveraging the robust infrastructure of Cloudflare to serve malicious content. However, when Cloudflare took action and blocked these accounts, the attackers quickly pivoted. Because the blockchain is decentralized and anonymous, the hosted malicious code becomes harder to detect and take down.
After the deployment of the infected smart contracts, they function independently. The only recourse for BSC in such scenarios is to depend on the vigilance of its developer community to identify and report any malicious code found within these contracts.
Why Binance Smart Chain and Blockchain for EtherHiding?#
The choice of Binance's infrastructure for EtherHiding is strategic. The Chain is known for its high performance, low transaction fees, and robust ecosystem supporting a wide array of applications.
These features make BSC attractive not just to legitimate developers and users but also to attackers seeking a reliable and cost-effective platform to host their malicious endeavors. The very attributes that contribute to BSC's success in the blockchain world also make it an appealing vector for cyber threats.
The decentralized nature of blockchain makes it difficult to take down or alter malicious content once it's embedded in a smart contract. This ambivalence of decentralized technology presents a complex challenge, requiring a balanced approach that preserves the benefits of decentralization while protecting against its potential for abuse.
In the shadow of sophisticated cyber threats like EtherHiding, the importance of robust digital security and protection mechanisms becomes increasingly important. Neptune Mutual is a project that focuses on the same principle: protection against online threats. We are committed to safeguarding users and their funds against the kinds of vulnerabilities exposed by attacks in the Web3 space.
Neptune Mutual is a solution in the DeFi insurance landscape, aiming to fortify the security framework of the DeFi sector and ensure the safeguarding of digital assets. Operating on an innovative parametric model, it ensures that payouts are determined based on predefined parameters.
It streamlines the process by eliminating the need for lengthy and complex claim verification processes. In the event of a security breach, such as a hack or exploit, policyholders are assured of receiving timely payouts, thereby minimizing their financial risk without the burden of providing proof of loss.
We offer a marketplace available on the Ethereum, Arbitrum, and BNB Smart Chain networks. Projects can create cover pools on the marketplace, letting their users purchase cover policies.
We invite you to reach out to us through our contact page. Our dedicated team is ready to assist you in setting up cover pools and defining parameters that align with your project's unique requirements.
