On Tuesday, a notable cross-chain liquidity protocol, THORChain has halted all trading on its network. According to a Twitter post by the protocol, the decision follows reports of possible vulnerability on its network. The THORChain team said the reports are verified and shutting down the network is the best precautionary measure it could take.
According to social media reports, THORChain’s liquidity platform Nine Realms and the dedicated security team THORSec obtained “credible reports” about a potential vulnerability impacting THORChain. Following this reports, Nine Realms tweeted that the network was preemptively paused by NO’s to investigate the authenticity of the report.
It is noteworthy that this is not the first time that trading on THORChain will be halted. Recall that in late 2022, its team paused operations on the network following reports of a software bug which caused “non-determinism between individual nodes.” But after about 20 hours, the issue was fixed and trading resumed on the network. In 2021, the cross-chain liquidity protocol also halted trading on its network after suffering an attack from an exploiter. According to findings, the exploitation led to the loss of more than $7 million in crypto assets.
Side Notes on THORChain
As a liquidity protocol, THORChain enables users to exchange assets between numerous blockchains without using centralized exchanges. Currently, it has a settlement layer which avails swaps between eight different chains, including Bitcoin, Avalanche, Cosmos, Dogecoin and many more. Barely a year ago, the protocol launched its synthetics offering. This offering enables users to create derivative versions of other popular cryptocurrencies like Bitcoin and Ethereum. According to findings, the synthetic assets get support from liquidity pools on the Thorchain ecosystem.
In November, THORChain also launched its single-sided staking capabilities. This offering allows members of its community to leverage on the capabilities of DeFi while maintaining ownership of their crypto assets. More so, users are able to enjoy multichain financial offerings without any secondary asset exposure. Through the single-sided staking, the protocol wants to foster user accessibility and ensure mainstream adoption of DeFi.
Notably, the launched staking offering by THORChain runs with guarded functionality for native BTC. The protocol plans to add full features to all eight native assets available on the network in the future.