In a new report, cross-chain liquidity protocol THORChain has halted trading on its mainnet due to a potential network vulnerability. By taking this proactive step, the protocol may be one of the cases that escaped hacker exploitation.
Hackers usually look for vulnerabilities in crypto networks to exploit. This was the case with Euler Finance which recorded the largest DeFi operations in 2023.
THORChain Mainnet may be at risk of exploitation
The protocol notified the report on Twitter today, March 28. The team discovered reports of a vulnerability with a THORChain dependency that could put the mainnet at risk.
As such, the team halted all trading activities on the network to protect its users from the issue and to verify the report.
Before the announcement, a posts on Twitter revealed that THORChain’s liquidity platform Nine Realms and THORSec had previously received valid reports of the issue. Pluto (9R) also revealed that the team has taken steps to stop mainnet operations worldwide.
In response to Pluto (9R), Nine Realms stated that the reason for halting activities on the THORChain mainnet is to investigate whether the report is correct. It also promised that users would receive updates as the investigation progresses.
Briefly about THORChain and network issues
THORChain is a decentralized cross-chain liquidity protocol that emerged in 2018. Users of the network can exchange assets between blockchains without a centralized exchange.
The eight blockchains supported by THORChain include Ethereum, Bitcoin, Cosmos Hub, Binance Chain, Bitcoin Cash, Dogecoin, Avalanche and Litecoin.
Notably, this is not the first time THORChain has halted its mainnet operations. The network stopped its operations after a crime on July 16, 2021. The hackers stole a whopping $7.6 million in digital assets.
When Chris Blec commented on the attack revealed that it could have been worse if not for the caps that THORChain places on its liquidity pools.
The second incident that halted mainnet operations occurred in October 2022. A software bug caused “non-determinism between individual nodes.” The developers shared update on Twitterstates their steps to fix the problem.
Many responses to this questioned the decentralized nature of THORChain, given how easily the team halts its operations. A user asked how the team got consensus from the nodes to stop the trading activities so quickly. But others praise the team to be quick to prevent exploits that could lead to losses.
At the same time, the latest incident has affected the price of RUNE. The asset is currently trading in downward momentum and the price is $1.30.
Featured image from Pexels and chart from TradingView