Tinyman is a cryptoasset exchange. Their volume over the last 24 hours is $0. The exchange is rated “D” which means “Poor.” They are a crypto-only exchange.
|1st 1D Candle||Jun '22|
Tinyman is a decentralized exchange (DEX) built on the Algorand blockchain. It features a wide variety of verified tokens, as well as provides its users with access to non-verified tokens posted by the community. Tinyman remains a fairly new player in the blockchain market as it was launched in October 2021. However, it has already accumulated a loyal customer base which mostly consists of Algorand users. Tinyman hack
Tinyman went live on the Algorand Testnet on August the 9th, 2021. The launch of the testnet allowed Tinyman to collect users’ feedback, ensure the trust of the community, and allocate vulnerabilities that could still be present in the code. After all the tests were completed, Tinyman finally went live on the Algorand Mainnet on October 7th, 2021, enabling its users to exchange real funds.
Having operated smoothly for a bit more than a month, Tinyman announced its partnership with Moonpay. This is an on-ramp solution that, in addition to all other cryptocurrencies, allows users to load their wallets with Algo tokens and immediately use the funds on Tinyman. The exchange added a shortcut for the Algo purchase, providing its users with convenient access to such functionality.
The process wasn’t as smooth as the developers intended, though. On January 1st, 2022, an unknown hacker or group of hackers utilized a 0-day vulnerability in Tinyman’s liquidity provision mechanism that allowed them to drain Tinyman’s Algo, goBTC, and goETH pools. 13,576 Algo, 29 goBTC, and 138 goETH were lost in the incident, with a total value of $1.8 million USD at the time of the hack.
After that, at least three more attacks followed draining even more funds from Tinyman. However, as the Tinyman founders asked users to remove liquidity after the first attack struck, those further attacks yielded significantly less than the first one. Still, in a combination of all the attacks, Tinyman lost $2.9 million USD worth of crypto before the attacks were mitigated and the breaches patched.
Tinyman founders remained vocal throughout the entire incident and launched a compensation program that started on March 24th, 2022. All compensations were paid out in Algo making up a dollar equivalent of the stolen assets’ value with a snapshot taken on January 1st. To make a refund, the platform relied on its original investors that put their money at stake for this program. After that, the smart contract was updated to prevent future hacks, and since then no other incidents were recorded. Tinyman features
The set of features that Tinyman provides is rather typical for a decentralized exchange. It allows its users to conduct token swaps, enables liquidity provision (the function that previously got hacked in the aforementioned incident), and also makes it possible to stake liquidity provision tokens. It also features links to two popular bridges, Algomint and pTokens, that allow users to tokenize their crypto on the Algorand blockchain, as well as return their original crypto in exchange for the previously minted Algorand tokens. Moreover, it’s got an analytics page showing the price and TVL of different assets, the state of all pools, as well as the list of all transactions going through Tinyman. Algorand blockchain
It’s worth adding a few words about the Algorand blockchain, as it is the sole blockchain Tinyman exists on. Hence, understanding the basic features of the Algorand blockchain is important for the proficient use of Tinyman.
Algorand is a PPoS (pure-Proof-of-Stake) blockchain, with the voting power directly proportional to the amount of staked Algo. The protocol is based on the Byzantine consensus and is designed to be finalized in one voting round bringing sub-5-second finality. This allows Algorand to operate in real-time featuring some of the quickest and cheapest transactions ever provided by blockchain-based solutions.
Thanks to these features, Tinyman provides its users with true ownership of their coins as no assets ever leave user-controlled wallets, except for the actual swap. Besides, it offers quick finality and pretty low fees which can only be typically achievable on centralized exchanges. Tinyman fee structure
The fee paid for swaps is fixed at 0,3% as it consists of two parts. 0,25% of the transaction value goes to liquidity providers, while 0,05% is sent to the Tinyman Treasury. The goal of the Treasury is to fund future development, as well as to compensate for the potential losses. Thus, in the hack that took place in January 2022, the Treasury compensated 10% of the whole sum. The founders hope that the Treasury will be able to cover all the losses going forward.
In addition to Tinyman’s fee, standard Algorand transaction fees also apply. However, when it comes to creating pools, adding and removing liquidity, staking, and redeeming crypto, Tinyman doesn’t charge any fees whatsoever, with all fees solely belonging to the Algorand network. Besides, since Tinyman is a DEX, all funds are stored in users’ wallets and exchanged via smart contracts, hence deposit and withdrawal fees don’t apply. KYC/AML and anonymity on Tinyman
As Tinyman is a DEX, it does not feature KYC/AML verifications and can be used anonymously in this regard. However, the Algorand blockchain is transparent and has an open ledger, which means that all assets exchanged through Tinyman can be easily traced. Therefore, the anonymous usage of Tinyman requires an anonymous purchase of Algorand assets. Also, the Moonpay on-ramp provided in Tinyman’s interface does require KYC in order to purchase crypto which makes the exchange neither private nor anonymous. Tinyman team and partners
Tinyman’s team, including its founder, remains anonymous, with no information available on the web. The Algorand team members call themselves “a team with experienced fintech backgrounds”, implying that they have experience managing funds and can therefore be rather trustworthy. However, it is hard to verify, and the January 1st hack puts their experience at doubt.
When it comes to partners, Tinyman hasn’t managed to accumulate many of those. In addition to the aforementioned partnership with Moonpay, Tinyman gets informational support from the Algorand team being an important part of Algorand’s ecosystem.Read More