Uniswap Cross-Chain Bridge Assessment: Wormhole & Axelar Pass, LayerZero, Celer Fail

Key Points:

• Uniswap Foundation releases cross-chain bridge assessment report.
• Wormhole and Axelar approved for Uniswap’s protocol governance.
• LayerZero, Celer, DeBridge, and Multichain do not meet the current standards.

The Uniswap Foundation recently released a cross-chain bridge assessment report detailing the results of their analysis of various protocols. The report outlined approved use cases for Wormhole and Axelar for Uniswap’s protocol governance, while LayerZero, Celer, DeBridge, and Multichain did not meet the standards at the assessment time.

The analysis of Wormhole concluded that it satisfies the requirements of Uniswap DAO’s cross-chain governance use case with a set of reputable validators and satisfactory security thresholds. The implementation of the protocol and its operational practices were well-considered, with significant improvements made since the exploit incident in February 2022. However, there are still areas for improvement that the Committee recommends periodic monitoring for.

Axelar, on the other hand, conditionally satisfies the requirements with its sound crypto economic guarantees, well-considered protocol design, and sufficient validator set and thresholds, although a 4-of-8 multisig governing key aspects of the protocol is still a source of concern. The Committee recommends that the Uniswap DAO adopt Axelar, conditional on a successful transition from the multisig.

LayerZero was evaluated as not satisfying the full breadth of the requirements but is on a path to doing so with a planned upgrade to its Oracle and relayer set. The Committee encourages swift action from the LayerZero team in implementing this upgrade and recommends reassessment once the new configuration has been in operation for at least three months.

Celer did not satisfy the requirements with its current distribution of stakes and the lack of a functioning slashing mechanism, among other concerns. The lack of transparency around the operations of the validator set and the operational processes that govern important protocol updates also highlighted areas for significant improvement. The Committee recommends reassessment after a period of at least six months, provided these issues are materially ameliorated.

The analysis of deBridge concluded that a thorough reassessment may be necessary as some of its security assurances are expected to change upon introducing the deBridge governance token and implementing its planned slashing and delegated staking system.

Multichain was evaluated as not satisfying the requirements due to its largely permissionless validator set, lack of disincentives for validators to collude, and limited technical documentation, among other concerns. The Committee advises the team to focus on clarifying the security model of the protocol and improving transparency before it should be considered for reassessment by the Uniswap Community.

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