Due to a hack that took place last night, THORChain has currently been paused. The hacker attack resulted in a loss of $ 5 million in Ethereum (ETH).
The DeFi project discovered a vulnerability on its Chaosnet last night . This had been exploited shortly before to steal Ethereum, equal to a value close to 5 million. Initially the estimates were much higher, approaching a figure of 13 thousand ETH, but in the end it was fortunately discovered that it is a lower figure.
What is THORChain and what will happen after the hack
For those unfamiliar with it, this project is part of decentralized finance ( DeFi ) which focuses on creating interoperability between different protocols such as Bitcoin and Ethereum.
A few hours ago, Chad Barraford, the CTO of the Skyy Network project explained that if the project community votes shortly, the platform should start working again within 24 hours :
The bug in the code has been found by the team and a PR has already been opened to resolve the prob. If the community approves the change, the fix to @THORChain will be pushed out and trading resumed in ~24hrs I'm guessing. $RUNEhttps://t.co/g3AYszG8Gi
— Chad Barraford #BRINGTHECHAOS (@CBarraford) July 16, 2021
This tweet has been reposted by THORChain on Twitter so the protocol is expected to be back online shortly.
Meanwhile, THORChain’s native token, the RUNE utility token , is currently down 17% in the past 24 hours, according to Coinmarketcap data, although it’s not particularly at a loss looking at last month’s data. In fact, in the last 30 days the price has always been around $ 4.
The THORChain team meanwhile explained that they have enough funds to repay customers from the losses.
The only entity that will wear the burden will be the THORChain treasury, approx $5m will be used to donate to ETH LPs.
This is the purpose of the treasury during Chaosnet, to insure the network funds.
— THORChain #ACTIVATETHESYNTHS⚡️ (@THORChain) July 16, 2021
In addition, on Telegram the team has promised to work more on the security of the protocol and that they will do more audits.
“This is a disappointing time for all of us, but the LPs and Nodes shouldn’t be affected after everything is recovered (the funds will be restored). The network will be stronger and more resilient