Polyhedra Announces Buyback After 80% Token Drop Due to Liquidity Attack Optalysys Launches Server Processing Encrypted Data 40% More Efficiently Ink Foundation Introduces INK Token for On-Chain Capital Markets

Polyhedra, a crypto protocol, has announced a buyback plan following an 80% drop in the price of its token, ZKJ. The sudden decline was attributed to a coordinated liquidity attack on the ZKJ/KOGE pool on PancakeSwap, substantial deposits by Wintermute into centralized exchanges, and a cascade of liquidations on platforms like Bybit. On-chain data revealed that several addresses drained millions from the pool, with one address removing approximately $4.3 million in liquidity provider tokens and dumping 1.57 million ZKJ. The shallow KOGE/USDT pool was unable to absorb the sell pressure, leading to a liquidity spiral. Polyhedra's team injected approximately $30 million in USDT, USDC, and BNB as DEX liquidity to mitigate the impact. The team emphasized that no ZKJ holdings belonging to them were sold and that a full technical investigation is underway. The buyback initiative aims to offset the attack's impact and deter future exploits.

Optalysys, a U.K.-based startup, has introduced the world’s first server for blockchains that can process data at scale without decrypting it. The LightLocker node uses Fully Homomorphic Encryption (FHE), a mathematical technique that allows computations to be performed on encrypted data without compromising the encryption. Optalysys claims its server hardware is purpose-built for blockchain encryption and offers a cheaper alternative to costly and inefficient GPU-based systems, using 40% less energy. This development comes as several firms within the cryptocurrency space have been exploring similar technologies.

The Ink Foundation, the nonprofit behind layer 2 Ink, is launching its native token INK to bootstrap on-chain capital markets through a liquidity-first strategy. The token will debut on a decentralized finance (DeFi) lending and trading protocol built on Aave, with distribution beginning via an airdrop to early users. The foundation has stated that there will be no governance gimmicks or fluctuating emissions schedules. INK has a hard cap of 1 billion tokens minted, with no recourse to change the supply via governance proposals. Unlike other Superchain members, Ink's layer 2 governance will remain separate from the token.

Analysis: The recent events highlight the vulnerabilities and opportunities within the crypto ecosystem. Polyhedra's response to the liquidity attack demonstrates the importance of robust security measures and transparent communication in maintaining trust within the community. Optalysys' introduction of a server that can process encrypted data at scale represents a significant advancement in blockchain technology, potentially reducing costs and increasing efficiency. The Ink Foundation's approach to launching its token through a liquidity-first strategy and airdrop to early users underscores the growing emphasis on community engagement and decentralized finance within the crypto space. These developments collectively point towards a more secure, efficient, and community-driven future for blockchain technology.