- A $2M hack targeted Bedrock’s liquidity pools, affecting the synthetic Bitcoin token uniBTC.
- Despite the breach, Bedrock confirmed that core assets, including wrapped Bitcoin, are still secure.
- To address the hack, the platform is implementing a reimbursement plan and tightening security measures.
Liquid staking protocol Bedrock has also been hacked and it was revealed that the attack affected the protocol significantly. Hackers were able to raid the decentralized finance (DeFi) platform uniBTC, which is a synthetic Bitcoin token, and take $2 million in funds.
On September 27, through a post on X, Bedrock explained that the vulnerability that was exploited was focused on liquidity pools of decentralized exchanges. The company explained the issue as “handled,” the company added that measures are being taken to ensure such occurence does not happen again. The platform also said that it will reveal its plan for a refund to the users who were impacted by the data breach.
However, Bedrock stated that its base holdings such as wrapped Bitcoin (BTC), and other assets are secure. Liquidity pools linked to decentralized exchanges bore the brunt of the losses that happened, with platform’s core not being significantly affected. The protocol wanted to assure users that the breach did not affect the actual assets backing the synthetic tokens it provides.
Institutional Focus for Bedrock
Bedrock, a multi-asset liquid staking protocol launched by Singapore-based blockchain company RockX in February 2023. The protocol provides the following products: uniBTC, uniETH, and uniIOTX, which are synthetic tokens that enable users to earn yield via staking. To this end, platform has decided to target institutional investors seeking secure and compliant staking services by concentrating on KYC and AML regulations.
Data from DefiLlama shows that Bedrock is now the eighth largest liquid staking protocol with total value locked at over $240 million. Nonetheless, the platform continues to be a dominant force in the liquid staking space where protocols provide users the ability to stake their tokens without having to commit them to a specific position.
The wider liquid staking sector has grown in the past few months, with the Ethereum-based restaking protocol EigenLayer launched in April. The total value locked in liquid staking has now reached $11.4 billion with EigenLayer having a value of over $12.1 billion, said DefiLlama.
While Bedrock tries to win back its users and establish its reimbursement plan, the liquid staking market is growing. Although the exploit is a negative, the strong focus on security and compliance of the protocol means it could rebound and keep pace in the expanding DeFi sector.
