THORSwap relaunches cross-chain trading on four of five networks

October 12, 2021 Coin Telegraph

chaosnet

THORSwap users can now transact across Bitcoin, Litecoin, Binance Smart Chain and Bitcoin Cash networks.

Cross-chain decentralized exchange (DEX) THORSwap appears to be on the path to recovery after the THORChain network was taken offline following major exploits just three months after entering its guarded launch.

The Cosmos-powered network aims to support decentralized trades executed across different blockchain networks such as Bitcoin (BTC) and Ethereum (ETH). According to an Oct. 12 progress report, the team behind the project’s decentralized exchange THORSwap has so far restored functionality for four of the five networks it supported prior to going down in July.

The update states that THORSwap has resumed swap functionality across the Bitcoin, Bitcoin Cash (BCH), Litecoin (LTC), and Binance Smart Chain networks, adding that the team is currently in the process of reinstating support for Ethereum.

15 summaries about @THORChain

1. $BTC, $ETH, $BNB, $LTC, $BCH - 5 economic significant blockchains are integrated.

2. Got exploited but hardened and became stronger than ever.

3. Recovered 4 chains and is in the process of recovering the last chain - Ethereum.

1/7
— THORSwap ⚡ ᚱ (@THORSwap) October 12, 2021

THORSwap added it is working to integrate support for the Terra stablecoin network and the Cosmos’ decentralized finance hub, Gaia. Further integrations with other crypto assets, including Dogecoin (DOGE), Decred, Haven and Monero (XMR), are also under development.

The team is also working to improve the performance of network nodes.

THORSwap’s highly guarded “chaosnet” was partially launched in April, following the launch of THORChain’s initial systems in July 2020.

Despite apparent early success, the THORChain network would suffer three hacks during June and July, forcing it to take some services offline.

THORChain was initially exploited in June. However, the team downplayed the incident at the time, stating that the first exploit attempt was limited to $140,000, "which is a small amount compared to other exploits."

The network was exploited again for a much larger $7.6 million in Ethereum on July 16 after a hacker discovered a vulnerability resulting in the suspension of operations. THORChain was attacked for a third time on July 23 when a hacker exploited the network’s Ethereum router to steal $8 million worth of ETH.

"It's been a tough time for THORChain during the last few months, but fundamentals never changed," said the THORSwap team.

$5M in Ethereum Lost in THORChain Exploit

July 16, 2021 The Crypto Briefing

ThorChain loses $7.6M in ‘Chaosnet’ exploit, offers hacker a bounty to return funds

July 16, 2021 Coin Telegraph

chaosnet

The ThorChain network remains halted after the protocol suffered a hack in which the perpetrator is estimated to have made off with $7.6 million in crypto assets.

Popular cross-chain decentralized exchange, ThorChain, has suffered a multimillion-dollar breach.

Estimates as to the scale of the damage vary, with ThorChain revising the initial estimate that 13,000 ETH (worth $25.1 million) had been stolen down to 4,000 ETH (roughly $7.6 million) as a ballpark for damages.

At this stage the estimate is around ~4000 ETH worth of assets (ETH/ERC20) was taken, not 13k ETH.

More detailed assessment and recovery steps will be announced soon.

The users who suffered (LPs) will be made whole in the coming weeks. https://t.co/LR2x8VZ2kx
— THORChain #ACTIVATETHESYNTHS⚡️ (@THORChain) July 15, 2021

In the ThorChain community Telegram channel, administrators have indicated the project has the funds needed to cover users’ stolen assets, but articulated a preference for the hacker to return the stolen funds in exchange for a bug bounty.

“While the treasury has the funds to cover the stolen amount, we request the attacker get in contact with the team to discuss return of funds and a bounty commensurate with the discovery,” a Telegram post stated, adding that user funds “will be available when the issue has been patched & the network resumes.”

ThorChain has since tweeted that its preliminary roadmap to recovery is underway, announcing that after the vulnerability is patched and the network restarted, Ether will be donated to liquidity provider pools to reimburse impacted users. From there, the team plans to engage security firms to have its contracts audited.

As of this writing, the ThorChain network remains halted.

This is a disappointing moment for all, but LPs and Nodes should be unaffected after all is recovered (the funds will be restored).

The network will be stronger and more resilient.
— THORChain #ACTIVATETHESYNTHS⚡️ (@THORChain) July 16, 2021

Blockchain cybersecurity firm, Halborn Security, is compiling a proposal to the ThorChain community for “Advance Persistent Protection,” offering up a team of up to half a dozen “ethical security engineers working to break every update on ThorChain."

Thorchain entered into its guarded “Chaosnet” launch during April, facilitating cross-chain swaps across the Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Binance Chain networks.

DeFi Watch founder Chris Blec said the staged "raise the caps" launch of ThorChain had prevented an even greater loss of funds.

Keep in mind - THORchain has been responsibly using a guarded launch approach to its rollout. This exploit could have been *much worse* if they had just recklessly launched without caps on its liquidity pools.
— Chris Blec (@ChrisBlec) July 15, 2021

Today’s attack is not the first time ThorChain has been targeted by hackers during its Chaosnet deployment, with the protocol losing at least $140,000 worth of assets last month.

chaosnet