BTC

$95442.583

-1.68%

ETH

$3302.375

-0.94%

XRP

$2.22

-0.88%

BNB

$651.903

-0.91%

DeFi

Fantom Foundation Using Axelar, LayerZero Bridge Solutions After Multichain Hack

July 12, 2023 - Around 3 mins mins to read

Key Points:

  • The Fantom Foundation is facing persistent interruptions and security problems with the Multichain protocol, leading to substantial financial losses and concerns for users.
  • As a response, the foundation is exploring alternative chains such as Axelar and LayerZero as network bridging technologies to reduce reliance on Multichain.
  • Recent exploits resulting in significant fund transfers have prompted Multichain to temporarily cease operations, while the absence of Multichain’s CEO has raised suspicions of an inside job.
The Fantom Foundation is exploring alternate chains to fuel its operations because of the persistent interruption of the Multichain protocol caused by hackers and force majeure.
Fantom Foundation Using Axelar, LayerZero Bridge Solutions After Multichain Hack

After a number of security problems involving the Multichain bridge in which huge sums of crypto assets were transferred under questionable circumstances in two distinct events, the Fantom Foundation is taking strong action. The foundation acknowledged the tough situation that the current Multichain breach had placed Liquidity Providers (LPs), token holders, and general protocol users in.

The Fantom Foundation officially acknowledged the canonical bridge within the network. It serves as a reminder to the community of the ecosystem’s variety and adaptability in terms of infrastructure.

The development prompted the foundation to recommend Axelar and LayerZero as alternate network bridging technologies. It was also said that Axelar and LayerZero are gaining momentum as a result of the Multichain issues.

“In light of the current events, the Fantom Foundation is taking a hands-on approach toward reducing the network’s reliance on any one particular solution for bridging and liquidity. With this, the Foundation will look to seed both Axelar and LayerZero issued asset pools directly with the bridges themselves to encourage protocol liquidity and confidence.”

Fantom Foundation Using Axelar, LayerZero Bridge Solutions After Multichain Hack

A possible exploit earlier this month resulted in the transfer of $125 million, followed by another transfer of $103 million in various assets. After the first outflow, Multichain advised users to stop using the project and cancel contract permissions, however, a significant quantity of assets remained on the network.

Fantom Foundation said that it is currently awaiting an official announcement from Multichain as well as instructions on its future moves. Remember that the most recent breach discovered by Arkham Intelligence resulted in the theft of around $125 million in various tokens from the Multichain Bridge. The company immediately ceased operations in order to mitigate the devastation caused by this exploit.

Fantom Foundation Using Axelar, LayerZero Bridge Solutions After Multichain Hack

The foundation recognized Multichain’s higher share as the major bridge that supports consumers inside its ecosystem. This situation is growing intolerable, and the protocol has said that it will look for alternate options.

Some experts are becoming more concerned about an inside job. The absence of Multichain’s CEO, whose whereabouts are unknown, has fanned concerns.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Axelar

Fantom Foundation

hack

LayerZero

multichain

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
DeFi

Fantom Foundation Using Axelar, LayerZero Bridge Solutions After Multichain Hack

Key Points:

  • The Fantom Foundation is facing persistent interruptions and security problems with the Multichain protocol, leading to substantial financial losses and concerns for users.
  • As a response, the foundation is exploring alternative chains such as Axelar and LayerZero as network bridging technologies to reduce reliance on Multichain.
  • Recent exploits resulting in significant fund transfers have prompted Multichain to temporarily cease operations, while the absence of Multichain’s CEO has raised suspicions of an inside job.
The Fantom Foundation is exploring alternate chains to fuel its operations because of the persistent interruption of the Multichain protocol caused by hackers and force majeure.
Fantom Foundation Using Axelar, LayerZero Bridge Solutions After Multichain Hack

After a number of security problems involving the Multichain bridge in which huge sums of crypto assets were transferred under questionable circumstances in two distinct events, the Fantom Foundation is taking strong action. The foundation acknowledged the tough situation that the current Multichain breach had placed Liquidity Providers (LPs), token holders, and general protocol users in.

The Fantom Foundation officially acknowledged the canonical bridge within the network. It serves as a reminder to the community of the ecosystem’s variety and adaptability in terms of infrastructure.

The development prompted the foundation to recommend Axelar and LayerZero as alternate network bridging technologies. It was also said that Axelar and LayerZero are gaining momentum as a result of the Multichain issues.

“In light of the current events, the Fantom Foundation is taking a hands-on approach toward reducing the network’s reliance on any one particular solution for bridging and liquidity. With this, the Foundation will look to seed both Axelar and LayerZero issued asset pools directly with the bridges themselves to encourage protocol liquidity and confidence.”

Fantom Foundation Using Axelar, LayerZero Bridge Solutions After Multichain Hack

A possible exploit earlier this month resulted in the transfer of $125 million, followed by another transfer of $103 million in various assets. After the first outflow, Multichain advised users to stop using the project and cancel contract permissions, however, a significant quantity of assets remained on the network.

Fantom Foundation said that it is currently awaiting an official announcement from Multichain as well as instructions on its future moves. Remember that the most recent breach discovered by Arkham Intelligence resulted in the theft of around $125 million in various tokens from the Multichain Bridge. The company immediately ceased operations in order to mitigate the devastation caused by this exploit.

Fantom Foundation Using Axelar, LayerZero Bridge Solutions After Multichain Hack

The foundation recognized Multichain’s higher share as the major bridge that supports consumers inside its ecosystem. This situation is growing intolerable, and the protocol has said that it will look for alternate options.

Some experts are becoming more concerned about an inside job. The absence of Multichain’s CEO, whose whereabouts are unknown, has fanned concerns.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.