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"Boring Ape" throws 4 billion U.S. dollars back to its holders, will NFT Hodlers usher in an airdrop spring?

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This article uses the data on the chain to analyze how scientists laugh at the "boring ape" airdrop spree, and the rise of native encryption culture in the NFT community

Original source: OKLink

Original author: 0x6617

October last year, BAYC The (Bored Ape Yacht Club) team revealed on Twitter the idea of launching Token in Q1 of 2022.

They said, "WEN TOKEN (when to issue ERC20Token)" is a question often asked by the community. For the holders and the wider NFT community, the team hopes to implement it in a more robust way .

Now, $APE (ApeCoin) is finally launched, with the acquisition of CryptoPunks and Meebits by Yuga Labs, the parent company of BAYC, and the cooperation with the top chain game company Animoca Brands Under the aura of developing secret projects, and under the halo of "Yuga Labs is building the Disney of the blockchain, and the Marvel universe of Web 3.0", the airdrop ratio of 15% $APE is considered to make a group of already free people more free.

After the start of the airdrop, the gas fee has increased by more than 300 Gwei. OKLink data shows that as of writing, the ApeCoin contract has destroyed 207 ETH, ranking 6th.

Image source: OKLink

Currently, 80% of the 15,177 eligible addresses are complete To claim, a total of 150 million $APE airdrops have been claimed, and nearly 112 million have been claimed, with the remaining 38 million, with a total value of over 500 million US dollars.

Image source: Dune Analytics

The unprecedented popularity made $APE a Launched, it grabbed most of the market's attention, and even triggered the "arbitrage involution" of scientists.

One of the scientists loaned the fragmented ERC20 BAYCToken of BAYC NFT through the flash loan in NFTX, and then redeemed the BAYC NFTs, and finally obtained 60,564 $APE.

In just one day, in the encrypted community that is boiling because of $APE, we have seen the refurbishment of on-chain arbitrage techniques. Under the new trend of NFT financialization, The complexity of NFT arbitrage and attack methods has also begun to match that of DeFi, and the gameplay is more abundant. Smart people make a lot of money by taking advantage of loopholes in the rules, and we have also seen the community’s expectations for $APE.

At the same time, I also noticed the expectations of other NFT Hodlers, and believed that the launch of $APE may set off a round of airdrop spring, and accelerate other project parties to better their own routes After all, simply issuing NFT is obviously unable to satisfy the current market's gameplay.

Top Scientists "Make a Fortune" on the Chain

On March 17th, Okey The SkyEye team on the cloud chain detected that the APE airdrop encountered lightning loan arbitrage by scientists, and the attacker made a profit of more than 60,000 $APE.

So how does the attacker take advantage of the loopholes in the rules for arbitrage? Let's review the distribution and airdrop rules of $APE.

A total of 1 billion $APE:

15% will be donated to BAYC, MAYC series

47% will be part of DAO's "Ecosystem Fund" over time

15% will be donated to Yuga Labs;

< p>1% to the Jane Goodall Foundation Legacy Foundation;

14% will go to "Startup Contributors", assuming Yuga partners and investors, 10 million Token prepaid;

8% will be owned by the founder of "Boring Ape" BAYC;

According to the above rules, the circulation at the time of issuance should be 277.5 million (assuming all airdrops are claimed), accounting for 27.75% of the total supply.

According to the information released by the project party, the airdrop of $APE is shown in the figure below. The airdrop will start at 20:30 on March 17 (HKT), and the claim period will be 90 days.

Image source: ApeCoin official website

It should be noted that if only Holders of BAKC (dogs) are not eligible to apply, and need to pair BAYC or MAYC with a BAKC. In addition, the IDs of apes and dogs do not need to match. The claim is one-time, and the airdrop token associated with the NFT can only be claimed once.

According to the analysis of the SkyEye team on the chain, since the airdrop of $APE depends on the instantaneous state of a user holding NFT, rather than the snapshot time, it gives the attack It is possible for investors to borrow ERC20 BAYC Token through flash loan in exchange for NFT, and then apply for $APE.

The specific operation process is as follows:

1. Scientist "0x6703" spent 106 ETH to purchase BAYC NFT numbered "1060",

< /p>

Image source: OKLink

2. Scientists deployed "0x3ebd" attack contract, through "0x3ebd" has created "0x7797" contract, and then transfer the BAYC NFT numbered "1060" to "0x7797”;

< p>3. Loan out 5.2 ERC20TokenBAYC of NFTX in Flash Loan;

4. Use 5 fragments in NFTX Vault to redeem 5 BAYC NFT "7594", " 4755", "9915", "8214", "8167", cost 0.2 redeem fee;

< img src="https://image.blockbeats.cn/upload/2022-03-18/f80b406c7a6f1b89e38712c1321e39108cebf911.png">

Image source: OKLink

5. Transfer the 6 BAYC NFTs in the contract to "0x7797", and airdrop the address "0x025c" to apply for $APE, a total of 60,564 pieces;

6, and then the scientists will 6 Return 1 BAYC NFT to NFTX Vault, get 6 fragmented ERC20 BAYC, and pay 0.6 ERC20 BAYC handling fee;

7, return 5.2 more Fragmented ERC20 BAYC;

8. Finally, go to SushiSwap to sell the remaining 0.2 ERC20 BAYC.

Image source: Drawn by the Tianyan team on the chain

As a result, the scientist's arbitrage profit was 668,800 US dollars, and his gain was 944,400 US dollars, which were obtained by selling 60,564 $APE (about 908,400 US dollars at the current price of 15 US dollars) and selling 0.2 fragmented ERC20 BAYC 13.92 ETH (approximately 36,000 U.S. dollars), the attack cost is 275,600 U.S. dollars, which is 106 ETH spent on purchasing "1060" NFT.

In this incident, the FlashLoan provided by the NFTX platform was used by scientists to realize the $APE airdrop arbitrage, so the NFTX project party is also discussing the use of the following mechanism to prevent< /p>

1) Cyclic operation protection

That is to charge a handling fee according to the operation time interval, such as in redeem For mint or swap operations on the same block, 50 times the handling fee will be charged. If it is the next block operation, it will be charged 49 times the handling fee, and the next block will be charged 48 times, until it is reduced to 1 time after 49 blocks; The fee returned to normal after about 10.8 minutes.

2) FlashLoan bidding mechanism

Before using FloashLoan, you need to submit a request first, and then there are 5 After 5 minutes, the highest bidder can use the flashloan function in the next 5 minutes. In this way, the robot that uses the floashloan mechanism to lead the airdrop can feed back more value to the vault.

The rise of native encryption culture may set off a new trend

Since BAYC announced the acquisition of CryptoPunks and Meebits IP on March 12, and the launch of $APE on March 17, the BAYC series has always dominated the OKLink NFT rankings.

Data show that in the past 7 days, the transaction volume of BAYC and MAYC reached 89.6 million US dollars and 54 million US dollars respectively.

Image source: OKLink

The floor price of BAYC rose from 80 ETH on March 12 to 108.5 ETH on March 17, an increase of 36% , while the floor price of MAYC rose from 17.9 ETH to 24 ETH on March 17, an increase of 34%.

However, after $APE went online, the floor prices of BAYC and MAYC both fell sharply. The current floor price of BAYC is 92.7 ETH, which has shrunk by 15%. MAYC It is 17.9 ETH, basically smoothing out the current round of gains.

As of writing, $APE is tentatively trading at $15.2, up 79% from today's opening price of $8.5.

Since the release of BAYC, its Web 3.0 "Ape Universe" has undergone three stages of changes.

The first time was the launch of "Mutant Ape" MAYC. Officials set out to create 20,000 mutant apes, of which 10,000 were airdropped to BAYC holders, and the other 10,000 were designed as a mechanism to introduce newcomers into the boring ape ecosystem.

The second time is that Yuga Labs, the parent company of BAYC, announced the acquisition of CryptoPunks and Meebits IP and some NFTs. CryptoPunks, as the OG of the NFT session, has its unique historical status. This move by Yuga Labs also successfully acquired the "rival" and further expanded its kingdom.

The third time is to launch $APE. After all, the price of apes is too high for ordinary users, and fragmented NFTs are easy to be decoupled from the actual price. If market participants are optimistic about the follow-up development of apes, they can choose to buy $APE, and they can also enter apes through $APE Community, to achieve the goal of growing and benefiting with the project.

We are in the 《OKLink Annual Insights 03｜Lego Components of Metaverse: NFT+GameFi, 2022 Six Major Trends Forecast" mentioned in the article that BAYC flipped CryptoPunks in the floor price at the end of December 2021. The reason is that BAYC changed from From the beginning, a virtual community with a collective identity was built for users.

Investing in BAYC is more like stepping on the two hot sectors of social networking and finance at the same time, allowing investors to take the lead in forming a kind of The bond of club members enhances the holder's sense of identity and belonging.

The emergence of $APE has caused a collision between the NFT circle and the ERC20 market. It is different from meme coins such as Doge and Shib, but it also has a strong Encrypted cultural attributes, and what kind of chemical reaction the collision of the two will produce is currently unknown.

As Yuga Labs CEO Nicole Muniz said before, "I don't know how big the market size of BAYC will be in the future. Of course, this is not to say that I don't think BAYC has no future, but hope that Yuga Labs can be further developed, and also push us to be able to create a lot of unique and special things, and communicate with the larger community in different ways.”

Yesterday, Animoca Brands announced on Twitter that it will use ApeCoin in a secret project developed in cooperation with BAYC. On the previous day, foreign media said that Yuga Labs will start virtual land sales this year, and launch the game MetaRPG and APECoin to jointly build Yuga Labs' metaverse plan.

Earlier news, on January 21, Yuga Labs launched the mobile game "Apes vs. Mutants”, regular users can play as tourists, while BAYC or MAYC holders who register in BAYC’s Discord group can get additional rewards.

Obviously, pure PFP NFT is no longer suitable for the development of the current market, and it is a new way of NFT economic model under Web 3.0 when it is combined with finance and games. Exploration also has pioneering significance for the development of the Metaverse.

The launch of $APE is considered to be an important part of Yuga Labs building its own Web 3.0 paradise jigsaw. In order to change the status quo in the market, Yuga Labs allows us to see the potential and strength of the native encryption culture, as well as the strong cohesion formed by the deep cultivation of the community from beginning to end.

And its appearance has also given Hodlers who hold other NFTs a glimmer of expectation, whether the existing star NFT projects will also explore their own roadmap And perfection, making the NFT market, like DeFi before, usher in a round of airdrop spring.