GM! It's been another exciting week in web3. Welcome to your Monday digest, and here's what we'll cover:

• Binance's BNB Chain suffers $100m+ cross-chain bridge hack

• Lihan from Xangle: On dYdX vs. GMX Tokenomics Structures

• EU bans all crypto wallet services to Russia in new sanctions package

• Happy (belated) Q4 to those who celebrate

Sarah at Layer3

Your Web3 Briefing 📝

An analysis of what you missed in web3 over the past week

BNB Chain resumes operations after $100m bridge hack

Another day in web3, another cross-chain bridge hack.

Towards the end of last week, Binance's BNB chain faced a potential exploit where a hacker left with almost over $600m in funds. After temporarily suspending the chain on Thursday, CZ tweeted that the hacker was "only" able to drain $100m from the chain, with over 2 million BSC tokens withdrawn from a BSC token hub.

The question for the ages seems to remain: Will bridges ever be secure? Following the Nomad hack more recently, as well as the ever-rotating door of bridge hacks that have rocked the crypto world since this year has begun, it's beginning to feel like bridges don't necessarily prioritize having the best security measures and/or audits in place. That, and the fact that cross-chain bridges are notoriously complicated, with multiple vulnerabilities that other DeFi products don't face.

 As of now, only time will tell whether effort will be taken to improve preexisting bridging processes, or if there's a need for a completely new form of cross-chain asset transfer infrastructure altogether. Nomad, Ronin, and Wormhole—oh my. Read on for 2022's biggest cross-chain bridge hacks.

Sarah's Recommended Reads: The Tokenomics of dYdX vs. GMX

Welcome to Sarah's Recommended Reads! Here, I'll be summarizing well-written articles or threads by web3 thinkers and builders that you should know about.

Up today is Lihan's thread on the Tokenomics of dYdX vs. GMX. Lihan explores decentralized perpetual crypto markets and explains the differences between dYdX and GMX, with dYdX having the most market share by far.

One of the reasons for this market share and larger adoption? dYdX's retroactive token airdrop, which dropped just about 7.5% of its 1bn token supply to past users in September 2021. Despite these incentives, dYdX's native governance token $DYDX has plummeted, mainly due to the fact that they have no incentive mechanism proportional to the revenue of the service itself.

Meanwhile, GMX (on Arbitrum) has recently risen to number #2 in the decentralized perpetual market. Unlike dYdX, $GMX token holders receive 30% of the protocol revenue for staking, leading to strong price resistance despite market conditions.

You can read more in his thread here! 

What else you should know

• Europe Bans All Crypto Wallet Services to Russia in New Sanctions Package

• New Tool Shows Just How Much Users Lost in Celsius Bankruptcy

• DefiLlama founder moves to NFT lending to tackle liquidity constraints

• Polygon’s zkEVM Public Testnet to enable smoother Ethereum migration

What we've been BUIDLing 🏗️

Our latest quarterly report is out!

Curious about what we got up to in the past couple of months? We got you. Quests, gasless NFT minting, and exciting new partners. Check it out:

• Launched Quests, a new feature

• Partnerships with Index Coop, Slingshot Finance, & more

• Full database and site migration from Vercel

• 30,000+ members on Discord

• Reached 2 million web3 interactions with daily Bounties

• Launched Layer3 Ambassador Program

🛣️ Stay up to speed on what we're building: Take a look at our roadmap to see what we've been cooking at Layer3, and a preview of what’s to come.

🚢 And if you want to help decide what we ship next: You can submit a feature request here and vote on your favorites! Some top community requests have already made it onto our roadmap.

Thank you for participating in Proof of Discovery

Four weeks ago we launched Proof of Discovery, a month-long digital conference intended to bring you the best and brightest ideas from all corners of web3.

The goal was for our community to meaningfully engage with some of the apps and protocols that they interact with on Layer3. From getting started with membership via Guild, to learning about community-oriented products and DAOs with Utopia, to proposing and voting on the next platform, protocol, or Dapp you want to see on Layer3 via jokedao, we experimented with all sorts of ways for you to discover web3.

To thank our community for participation, we've released a fun commemorative NFT to celebrate. Take a look here:

Thanks for reading!

Join our Discord and follow us on Twitter to stay up-to-date on the latest Bounties, communities, and more!

That's all for this week! Until next time, frens.

Cheers,

Sarah at Layer3

Let us know how we did👇