TAPIOCA DAO

DESCRIPTION OF EVENTS

TapiocaDAO is a decentralized autonomous organization (DAO) represented by a Cayman Islands Foundation, which created a decentralized Omnichain stablecoin ecosystem, comprised of multiple sub-protocols, which includes; Singularity, the first-ever Omnichain isolated money market, Big Bang, an Omnichain CDP Stablecoin Creation Engine, Yieldbox, the most powerful token vault ever created, tOFT (Tapioca Omnichain Wrapper[s]) which transforms any fragmented asset into a unified Omnichain asset, twAML, an economic incentive consensus mechanism, and Pearlnet, the self-sovereign Omnichain verifier network.

Omnichain interoperability focused on unifying DeFi's now trademark fragmented liquidity & UX, enabled through the LayerZero modular generalized messaging network, facilitated the creation of Tapioca's Omnichain CDP stablecoin creation engine, Big Bang, enabling users to mint Tapioca's unstoppable OmniDollar, USDO, with gas token & liquid staking token collateral from multiple networks in a chain agnostic manner. Current stablecoins are little more than store credits due to their lack of native interoperability, whereas USDO through the LayerZero OFT (Omnichain Fungible Token) super-standard can exist on any EVM or non-EVM. Tapioca's isolated money market, Singularity, also powered by LayerZero, empowers users on dozens of EVM & non-EVM networks to lend, borrow, and leverage up yield bearing assets. Pearlnet, a LayerZero Decentralized Verifier Network (DVN), allows the Tapioca ecosystem to achieve Omnichain interoperability & composability while minimizing trust and remaining self sovereign to avoid the costly mistakes of cross-chain protocols of the past.

USDO, or the OmniDollar, is the first over-collateralized, decentralized & censorship resistant Omnichain U.S. Dollar pegged stablecoin, built to conquer the stablecoin trilemma of price stability, censorship resistance, and scalability, as well as to fill the current void of a lack of a truly unstoppable and scalable stablecoin. USDO offers an entirely new paradigm to decentralized stablecoins by only employing decentralized gas tokens & liquid staking derivatives to remain censorship resistant while also being capitally efficient, and utilizes a novel incentive program, DAO Share Options (DSO), to self-perpetuate USDO. twAML or Time Weighted Average Magnitude Lock, is a novel economic incentive consensus mechanism used to power DSO's novel oTAP call option incentive. These call option incentives enable Tapioca to capture protocol owned liquidity (POL), which in turn is utilized by the Tapioca DAO to self propagate USDO's liquidity depth on the open market. This enables USDO to become a scalable & decentralized U.S. Dollar stablecoin.

"Seems that the following address managed to exploit Emergency Rescue function on one of the Vesting contracts deployed by the Tapioca Deployer."

"He drained 27mln $TAP in two transactions. Sold that in one go resulting in ~591 $ETH

He just drained another 3mln and sold again for 13 $ETH.

All the tokens have been drained from the contract. No more selling pressure."

"Tapioca DAO has suffered a social engineering attack. This enabled the attacker to compromise the TAP token vesting contract’s ownership which allowed the attacker to claim and sell this 30M vested TAP, which impacted the TAP/ETH DAO owned LP. The attacker then also comprised the USDO stablecoin contract’s ownership and added a minter to infinite mint USDO and drain the USDO/USDC LP pair. In total, 591 ETH & 2.8M USDC were stolen.

We have coordinated and are active in a war room with the necessary individuals and entities to proceed forward, and will be communicating on further steps when the situation is under control.

Please be aware of misinformation, scam links, and do not interact with any Tapioca contracts or tokens until further information is provided."

"We have hacked the hacker! Recovered 1000 ETH which is now safely in the DAO multisig. The 1000 ETH was DAO collateral within Big Bang Origins to mint USDO for USDO/USDC LP."

With this recovery, Tapioca's treasury now stands at $4.2M.

"Some funds have been recovered, though the full extent of the damage remains to be seen, though the full extent of the damage remains to be seen."

TapiocaDAO is a decentralized organization creating an Omnichain stablecoin ecosystem, featuring components like Singularity, Big Bang, and Pearlnet, which enhance interoperability in DeFi. Its flagship stablecoin, USDO (OmniDollar), is designed to be decentralized, censorship-resistant, and scalable, utilizing innovative mechanisms to ensure liquidity and efficiency across multiple networks. On October 18th, the network suffered from a social engineering attack where malware was installed on one of the primary key-holders through a phishing attack. This enabled the minting of a huge number of stablecoin tokens and a subsequent draining of the emergency fund of Tapioca (TAP) tokens. In a rare event, the team managed to reverse attack the hacker and recover 1000 ETH, which is the vast majority of the stolen funds. The situation is ongoing.

Rekt - Tapioca DAO - Rekt (Oct 21)
@0xTeun Twitter (Oct 21)
@tapioca_dao Twitter (Oct 21)
Arbitrum One Transaction Hash (Txhash) Details | Arbitrum One  (Oct 21)
Arbitrum One Transaction Hash (Txhash) Details | Arbitrum One  (Oct 21)
Arbitrum One Transaction Hash (Txhash) Details | Arbitrum One  (Oct 21)
Arbitrum One Transaction Hash (Txhash) Details | Arbitrum One  (Oct 21)
@zachxbt Twitter (Oct 21)
@officer_cia Twitter (Oct 21)
https://www.coingecko.com/en/coins/tapioca-dao-token (Oct 21)
Tapioca - The Omnichain Money Market (Oct 21)
TapiocaDAO | TapiocaDAO (Oct 21)

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