valik

Overview of the last 30 hours and the current situation: The team was notified of the rsETH exploit immediately by our internal systems and @HypernativeLabs monitoring. No fraudulent assets or transactions from the attackers occurred on Ink, and no suspicious borrow activity was observed in the Tydro markets before they were paused. This is because the Ink and Kraken security teams promptly blacklisted the attackers addresses from transacting on Ink and Kraken through @FortaNetwork and froze the rsETH asset on Tydro with the help of our technical and risk service providers. The Tydro infrastructure remains secure. The vulnerability was in rsETH’s LayerZero bridge. As a result of the exploit and broader market uncertainty, several larger depositors pulled out of stablecoin markets, which has led to a temporary spike in utilization and interest rates as they evaluate market conditions. These markets remain fully collateralized despite the higher utilization. Stablecoin and BTC collateral remains unaffected. Any exposure is concentrated amongst rsETH and wETH. As of writing, there is $21M of rsETH collateral borrowing $19.36M of wETH concentrated between two highly leveraged wallets. These markets are now frozen. Tydro is working with the Ink Foundation and other stakeholders in the broader ecosystem to provide a resolution for its users, and will be sharing a further action plan to remediate losses through official channels as the situation progresses. A large part of the recovery value depends on the decisions made surrounding the NAV of rsETH on L2s vs L1. While we await further information on the situation report and recovery plan, we want to be perfectly clear: Tydro is of the opinion that the only defensible framework is an equitable socialization across all rsETH holders regardless of chain. Tydro is actively monitoring the situation and considering all available avenues, including legal, to protect users on Ink. We expect other impacted L2 communities to seek the same equitable treatment for their users. We appreciate your patience as we navigate this difficult time, please stay tuned for further updates through official channels.