QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$1 750 000 USD
DECEMBER 2021
GLOBAL
8IGHT FINANCE
DESCRIPTION OF EVENTS
"Fork of $OHM on $ONE." "8ight Finance is a Decentralized Autonomous Organization (DAO), built by experienced DeFi developers, designers, and researchers." "We are proud to be a part of Defi 2.0."
"8ight Finance is a Decentralized Autonomous Organization (DAO), built by experienced DeFi developers, designers, and researchers. Our goal is to fulfill @danielesesta’s promise that he can’t keep, and also to create a policy-controlled reserve currency system, in which the behavior of the $EIGHT token is controlled by the DAO. Let’s dive into the tokenomics of $EIGHT."
"OlympusDAO, Wonderland.money, KlimaDAO has introduced new tokenomics to the crypto world and has achieved great success over the past year. 8ight Finance is focusing on reducing and maintaining a super fast and cheap protocol’s operation fee which will yield even more in APY for stakers, henceforth more incentives for treasury growth."
"Our 8ight universe will be on the Harmony blockchain. We believe Harmony as an Ethereum scaling solution is the future of DeFi! It is worth mentioning that significant liquidity and a potential growing DeFi ecosystem already exist on Harmony, which should be a strong base for our system."
"Our long-term goal is to be seen as the decentralized reserve currency of Harmony and the broader DeFi ecosystem, an ecosystem we believe is primed for explosive growth." "8ight Finance guarantees to share 33% of the DAO profits to OlympusDAO."
"When $EIGHT market price is below 1 DAI, the protocol buys it back and burns $EIGHT. When $EIGHT market price is above 1 DAI, the protocol mints and sells new $EIGHT."
"This is because the treasury must hold 1 DAI and only 1 DAI for each $EIGHT. Every time the protocol is bought or sold, it makes a profit. That means the protocol either gets more than 1 DAI on the sale side or spends less than 1 DAI on the purchase side."
"The fact that the protocol holds DAI for each token allows us to say with certainty that $EIGHT will not trade below its intrinsic value in the long term."
"Building a solid protocol is hard work, and it requires capital. Audits, development, legal, all of these things need some amount of money to get done. Beyond that, it requires alignment so that contributors feel personally incentivized to give their all."
"The first 1,000 initial discord offering whitelist will be opened on the 30th of October. Everyone can get more entries in the whitelisting program by joining our Discord’s role tasks! The more entries you get, the more likely you will be on the whitelist!"
"We’ve successfully launched and we’re overwhelmed with the support that the community gave us. But no time for rest, our team return to work with the aim of bringing the community the best products"
On December 6th, "Our private key got compromised and the funds have been transferred out of the treasury." "First of all, we are dreadfully sorry for the incident." "8ight Finance, an OHM fork on Harmony that offered to help people affected by the Snowdog DAO rug pull, lost around $1.75 Million in what’s supposedly a private key leak."
“Two devs in the team have the key, and they were sent through Facebook groups chat and google drive. This is our first project, so we must admit our opsec was low. At the time when the withdrawal happened, our team was working on launching the BUSD (4,4) bonds. To be transparent with everyone, we lost a lot of money and time invested in 8ight, and it f*cking hurts to see someone else taking away everything we had built. We delivered everything on time, and we reached out to Harmony, DFK, and a lot of partnerships to try and grow EIGHT. You guys here all know the admin and the mods team worked our a*ses off, but the timing of the market, the downfall of SB and SDOG, OHM bond funds f*cked up the price action, and we tried our best to push and deliver. So our team will take in opinions and decide later on.”
"We had contacted Synapse to find where the money was transferred, and they provided us with this ETH address: 0x4d8071452bF5f629eA1c72E1e42A18aebc04cA1d"
"The money has been sent to Tornado Cash, which is currently untraceable. We are finding the solution to recover from this incident."
"The admins of the discord server have assured the investors and members who lost their funds that they wouldn’t go this far to rug the pool. However, since all the money has already been sent to Tornado Cash, it’ll be tough to identify who was actually behind the address used to transfer the funds."
"After the incident, we had conducted the community vote. As proposed by the community, the fund will be used to rebuild a new protocol."
"Our new detail identity is being completed due to the opinions and feedback from the community. Specifically, the new project will establish a multisig from the very start. (multisig is a committee that includes 4 key holders: 2 team members, and 2 mods from the community)."
"Every proposal would need consensus from at least 3/4 key holders, before being executed. Simply put, it will take us about 2.5–3 months to complete all the necessary steps to prepare and roll out the new project’s release."
8ight Finance was launching an 8-ball themed DAO on the Harmony blockchain. According to the official story, the private key was shared through Google Docs and Facebook, and either of the two admins had access to it. All $1.75m was taken from the treasury. The team offered to disburse $250k of marketing budget or relaunch a new protocol, and the community voted for a relaunch. Presently, there do not appear to be any updates and the website is offline, though Twitter and Medium are still available.
HOW COULD THIS HAVE BEEN PREVENTED?
It's important that all private keys be maintained offline and that a multi-sig be set up for any project with a treasury. Our framework outlines that key holders should be trained and that there should be two reviews of the setup when the project is ready to launch.
https://rekt.news/8ight-finance-rekt/ (Jan 3)
https://coinmarketcap.com/currencies/8ight-finance/ (Jan 4)
@8ight_finance Twitter (Jan 4)
@8ight_finance Twitter (Jan 4)
Harmony Blockchain Explorer (Jan 4)
Harmony Blockchain Explorer (Jan 4)
Harmony Blockchain Explorer (Jan 4)
Harmony Blockchain Explorer (Jan 4)
8ight DAO | The Decentralized Reserve Currency (Jan 4)
https://medium.com/@eightdao/introducing-8ight-finance-a-decentralized-reservation-currency-protocol-3b902ce206a7 (Jan 4)
https://medium.com/@eightdao/incident-report-future-plans-ad51c65c66e7 (Jan 4)
https://medium.com/@eightdao/8ight-finance-dev-update-2-97b4afcbd78c (Jan 4)
https://medium.com/@eightdao/welcome-to-the-eight-ignition-phase-d78438577f19 (Jan 4)
https://medium.com/@eightdao/8ight-strategy-planning-d64ffe238356 (Jan 4)
Address 0x4d8071452bF5f629eA1c72E1e42A18aebc04cA1d | Etherscan (Jan 4)
8ight Finance SCAM ALERT? Only For Those Who Don't Believe. - YouTube (Jan 4)
8ight Finance Hacked: All Funds in Treasury Withdrawn due to Leak of the Private Key | CoinCodeCap (Jan 4)
Is 8ight Finance A Scam? Or Is 8ight Finance Legit? (Jan 4)
8ight Finance Admits "Opsec Was Low" After Treasury Compromised (Jan 4)
8ight Finance private key leaked, funds were transferred out and sent to Tornado Cash - Aliens: AI Crypto News & Markets Updates (Jan 4)
