In a new report, a cross-chain liquidity protocol THORChain has stopped trading activities on its mainnet due to a potential network vulnerability. By taking this proactive step, the protocol may be among some cases that eluded hackers’ exploits.
Hackers usually seek vulnerabilities in crypto networks to exploit them. This was the case with Euler Finance which recorded the largest DeFi exploits in 2023.
THORChain Mainnet Might Be At Risk Of Exploit
The protocol announced the report on Twitter today, March 28. The team discovered reports on vulnerability with a THORChain dependency that could put the mainnet at risk.
As such, the team stopped all trading activities on the network to protect its users against the issue and to verify the report.
Before the announcement, a post on Twitter revealed that THORChain’s liquidity platform Nine Realms and THORSec had earlier received valid reports about the issue. Pluto (9R) also disclosed that the team had taken steps to halt the mainnet operations worldwide.
In response to Pluto (9R), Nine Realms stated that the reason for halting the activities on the THORChain mainnet is to investigate if the report is accurate. It also promised that users would get updates as the investigation proceeds.
Brief On THORChain And Network Issues
THORChain is a decentralized cross-chain liquidity protocol that emerged in 2018. Users of the network can swap assets between blockchains without a centralized exchange.
The eight blockchains THORChain supports include Ethereum, Bitcoin, Cosmos Hub, Binance Chain, Bitcoin Cash, Dogecoin, Avalanche, and Litecoin.
Notably, this is not the first time THORChain is halting its mainnet operations. The network halted its operations following a breach on July 16, 2021. The hackers stole a whopping $7.6 million in digital assets.
While commenting on the attack, Chris Blec disclosed that it could have been worse if not for the caps which THORChain places on its liquidity pools.
The second incident that halted the mainnet operation occurred in October 2022. A software bug caused “non-determinism between individual nodes.” The developers shared the update on Twitter, stating their steps to fix the issue.
Many responses to this questioned the decentralized nature of THORChain, given the ease at which the team halts its operations. A user asked how the team got consensus from the nodes to halt the trading activities so fast. But others commended the team for being fast in preventing exploits that could lead to losses.
Meanwhile, the latest incident has affected the price of RUNE. The asset is currently trading in downward momentum, and its price is $1.30.
Featured image from Pexels and chart from TradingView