Today’s DeFi incident is serious and the industry needs to learn swift lessons from it. A few points on @FlareNetworks and FXRP need to be clear: 1. FXRP is not the same thing as the FXRP OFT rail The precautionary pause announced earlier applies to OFT-based cross-network transfers. Core FXRP / FAssets functionality on Flare continues to operate normally. 2. Canonical FXRP on Flare does not use the same architecture as the rsETH OFT under investigation FAssets on Flare is a trust-minimized system with audited smart contracts, onchain liquidation mechanics, independent challengers, governance controls, and explicit safety limits designed to keep risk visible and bounded. It is built by Flare. 3. Using the LayerZero OFT standard for FXRP transmission to other chains does not mean sharing the same security configuration or the same exposure as rsETH LayerZero security is configurable per pathway, not globally across every route. It appears that rsETH used a low security configuration, which is explicitly warned against in the LayerZero documentation. This is not how FXRP is configured. As a precaution, we have paused the FXRP OFT rail while the incident is being investigated. We will not resume it until the root cause is clearer. We support the industry-wide effort to establish the facts quickly and restore trust.
