Radiant Capital, a decentralized finance (defi) platform, has confirmed that it fell victim to a flash loan attack on January 2, 2023. This attack resulted in the protocol accruing bad debt in the WETH market, totaling about 1.3% of the total protocol TVL. According to Peckshield, a blockchain analytics firm, Radiant Capital lost approximately $4.5 million worth of digital assets during the attack.
Exploiting a Time Window
The attackers took advantage of a time window when a new market was activated in a lending market. Peckshield stated that the attack would have been prevented if the new market was activated with CF 0%.
Precautionary Measures
The Radiant Decentralized Autonomous Organization (DAO) Council has responded to the attack by pausing all markets on Arbitrum as a precautionary step. Additionally, an investigation into the incident is already underway.
Solvent and User-Focused
Despite the attack, Radiant Capital assures users that the protocol remains solvent and is taking steps to allow affected users to regain access to their funds. A remediation plan for the bad debt will be implemented to re-capitalize the protocol entirely and give users full access to their deposits. Furthermore, a proposed plan will be put in place to protect users at risk of liquidation during the pause period, ensuring fair treatment for all users.
Call for Communication
Radiant Capital urges the hackers behind the attack to establish contact with the defi platform before involving law enforcement. Additionally, the platform hopes to lift the pause within the next 24 hours, providing relief to affected users.
What are your thoughts on this story? Let us know in the comments section below.
Frequently Asked Questions
How much money should I put into my Roth IRA?
Roth IRAs allow you to deposit your money tax-free. You cannot withdraw funds from these accounts until you reach 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. So, when you withdraw, you'll pay taxes on those earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. You would owe $3,500 in federal income taxes on the earnings. So you would only have $6,500 left. Since you're limited to taking out only what you initially contributed, that's all you could take out.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow for pre-tax deductions from your taxable earnings. You can withdraw your contributions plus interest from your traditional IRA when you retire. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs are not allowed to allow you deductions for contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal required, unlike a traditional IRA. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Is it possible to hold a gold ETF within a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
An Individual Retirement Annuity (IRA) is also available. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs do not have to be taxable
What are the advantages of a IRA with a gold component?
There are many advantages to a gold IRA. It is an investment vehicle that can diversify your portfolio. You have control over how much money goes into each account.
You also have the option to transfer funds from other retirement plans into a IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part? You don’t need to have any special skills to invest into gold IRAs. They are offered by most banks and brokerage companies. Withdrawals are made automatically without having to worry about fees or penalties.
But there are downsides. The volatility of gold has been a hallmark of its history. Understanding why you invest in gold is crucial. Are you looking for safety or growth? Is it for insurance purposes or a long-term strategy? Only when you are clear about the facts will you be able take an informed decision.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. One ounce won't be enough to meet all your needs. You may need several ounces, depending on what you intend to do with your precious gold.
You don't have to buy a lot of gold if your goal is to sell it. Even one ounce is enough. But you won't be able to buy anything else with those funds.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
investopedia.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Lawful – WSJ
bbb.org
How To
Investing with gold or stocks
These days, it might seem quite risky to invest your money in gold. This is because many people believe gold is no longer financially profitable. This belief comes from the fact most people see gold prices falling due to the global economy. People believe that investing in gold would result in them losing money. However, investing in gold can still provide significant benefits. Here are some examples.
One of the oldest forms known of currency is gold. It has been used for thousands of years. It was used by many people around the globe as a currency store. It continues to be used in South Africa, as a way of paying their citizens.
Consider the price per gram when you decide whether you should invest in or not. The first thing you should do when considering buying gold bullion is to decide how much you will spend per gram. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. Although gold's price has fallen, its production costs have not.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. Selling your gold at a higher value than what you bought can help you make money.
We hope our article has given you a better understanding of gold as an investment tool. We recommend you do your research before making any final decisions. Only then can informed decisions be made.
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By: Terence Zimwara
Title: Radiant Capital Falls Victim to Flash Loan Attack: $4.5 Million in Digital Assets Lost
Sourced From: news.bitcoin.com/defi-platform-radiant-capital-loses-digital-assets-worth-4-5-million-after-flash-loan-attack/
Published Date: Thu, 04 Jan 2024 09:30:51 +0000
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