Quick Take

• Compound Finance has an estimated $150 million worth of COMP at risk of being exploited. 

• Infinity, a decentralized NFT marketplace, launched offering an airdrop to OpenSea users.

• Coinbase has implemented EIP-1559 for 95% of its Ethereum transactions.

• Ethereum Name Service has added NFT support for ENS profiles.

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Coinbase Adopts EIP-1559

Coinbase has now implemented EIP-1559 for 95% of its Ethereum transactions. Coinbase developed a new gas pricing algorithm for handling the EIP-1559 transactions, which leverages the new ETH fee history JSON API that allows dynamic computation of an appropriate max priority fee based on market conditions.

Support for the new gas mechanism was rolled out gradually as Coinbase compared metrics between legacy and EIP-1559 transactions. Coinbase found that on average, they saved an estimated 9% on effective gas prices and were able to improve their broadcast to confirmation time by 11 seconds.

Since implementing EIP-1559, Coinbase has burned more than 13,800 ETH, saving an average of 27 ETH per day. The burning of gas base fees makes Ethereum a more deflationary currency, rising in value as ETH is burned. Coinbase says they plan to eventually roll out EIP-1559 for 100% of its transactions.

Infinity NFT Marketplace Rivals OpenSea

Infinity, an NFT marketplace coined as a decentralized alternative to OpenSea, has launched offering an airdrop of their governance tokens for OpenSea users. Infinity plans to distribute 10% of its $NFT governance tokens to existing OpenSea users who transacted before October 4th, 2021.

The airdrop amount is based on tiers derived from OpenSea transaction volumes and won’t be transferable until November 5th. Infinity claims to be using the same smart contracts as OpenSea, meaning users don’t need to re-initialize their wallets or re-approve tokens. NFT influencers such as 0xb1 have backed the project.

The new marketplace is being dubbed as a Vampire Attack on OpenSea, as it is comparable to the Sushi fork of Uniswap. OpenSea users have long awaited a governance token airdrop from the marketplace, but it is seemingly becoming less likely to happen. OpenSea has become the largest NFT marketplace with nearly $3 billion in monthly trading volume.

490k COMP At Risk Due To Exploit

Compound Finance has a total 490k COMP tokens (currently worth an estimated $150 million) that are at risk of being exploited. The issue is tied to a bug on the comptroller contract that enables exploiters to overclaim their share of liquidity mining rewards.

The number of at-risk tokens increased after someone had called the drip function on Compound's Reservoir, which sent another 200k COMP tokens to the Comptroller. Robert Leshner, Founder of Compound Labs said 136k tokens are still in the Comptroller, and 117k has been returned to the community so far. A fix for the bug is taking 7-days to implement due to the governance process for new proposals.

Flashbots Releases API and RPC

Flashbots, a project that enables searchers to submit MEV transactions to miners without revealing them to the public mempool, has launched a public beta of Flashbots Protect. Since launch anyone has been able to submit transactions to Flashbots, however the Flashbots Protect release expands access by providing developers with an easy to integrate API and RPC.

Submitting transactions to Flashbots prevents transactions from being frontrun. Developers can integrate the Flashbots Protect API to give users the ability to submit transactions to Flashbots. No further action will be needed from the user. When a user executes a transaction, instead of being sent to the public mempool, it will be sent to Flashbots Protect. The submission of the transaction is then sent to the Flashbots network, resubmitted and monitored for its inclusion in a block.

Developers can display updates on the transaction to their users. Users are also able submit a cancel request at any time and the submission of that transaction will be paused. The Flashbots RPC endpoint is a tool that anyone can add to their wallet and have their transactions sent to Flashbots.

ENS Adds NFT Support for ENS Profiles

Ethereum Name Service added NFT support for ENS profiles. Users can now set an NFT as their ENS profile avatar which is displayed across dapps with Uniswap and 1inch among the first to support the new feature. Dapps that have already integrated ENS username support can pull avatar details from a name’s records. To add an NFT avatar to a profile, users must have their reverse record set and can designate an NFT under the “Text” section of their name on apps.ens.domains.