TLDR
- Bedrock, a diverse asset liquid staking platform, experienced a $2 million breach concerning uniBTC.
- The breach is now under control, and the rest of the assets remain secure.
- Bedrock is in the final stages of developing a reimbursement strategy and will provide a thorough post-incident report.
- Most of the financial setbacks occurred within DEX liquidity pools; reserves of wrapped BTC and BTC are intact.
- Bedrock stands as the eighth-largest liquid staking protocol with a total value locked surpassing $240 million.
On September 27, Bedrock, a platform that supports multiple liquid staking assets, has acknowledged being compromised by a security flaw. The breach event involved uniBTC, a synthetic Bitcoin token utilized in decentralized finance, resulting in losses close to $2 million.
Bedrock responded rapidly to the crisis, reassuring its users that the core problem has been resolved and that the rest of the funds are safeguarded.
Launched in February 2023 by Singapore-based blockchain company RockX, Bedrock aims to draw institutional investors into the realm of liquid staking.
🚨 Urgent Update from the Bedrock Team
The Bedrock team would like to notify you of a security breach impacting uniBTC. The issue has been resolved, and assets are safe.
We assure everyone that the essential wrapped BTCs and BTCs in reserves are secure.
— Bedrock Bitcoin Restaking LIVE (@Bedrock_DeFi) September 27, 2024
The platform provides assets like uniBTC, uniETH, and uniIOTX, offering synthetic equivalents of significant blockchain tokens. This allows users to gain rewards through staking.
Before the security breach, Bedrock had solidified its position as the eighth-largest liquid staking platform industry-wide, with more than $240 million in total value locked.
The breach primarily impacted decentralized exchange (DEX) liquidity pools. Bedrock clarified that the underlying wrapped BTC tokens and Bitcoin stocks in reserves were unaffected. This announcement helped mitigate fears about the breach's repercussions.
As a response, Bedrock confirmed they are nearing the completion of a detailed compensation plan for those affected.
The initiative also extends to sharing an exhaustive follow-up report soon, conveying a commitment to clarity and deriving learnings from the occurrence.
The Bedrock team turned to social media to keep users and the broader crypto audience informed. On X (previously Twitter), they discussed the breach and disclosed initial details of the incident.
This proactive communication played a crucial role in keeping users informed and potentially preventing further distress after the breach.
Protocols for liquid restaking like Bedrock have witnessed substantial advances recently. With a total value locked exceeding $11.4 billion, this domain is becoming more attractive for crypto investors.
Bedrock's role as the eighth-largest protocol in this area emphasizes its significance within the industry framework.
The Bedrock incident unfolds against a backdrop of rapid advancements in both liquid restaking and native restaking protocols.
Following the debut of the ETH restaking protocol Eigenlayer in April, these sectors have emerged among the industry's largest. Eigenlayer itself boasts over $12.1 billion in total value locked on its mainnet, as reported by DefiLlama statistics.
Bedrock's handling of the breach signals the protocol's dedication to security and fostering trust with its users. By placing an emphasis on robust Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, Bedrock has carved out a niche as a suitable platform for institutional investors managing significant funds.
