Multi-asset liquid restaking DeFi protocol Bedrock has suffered from a security exploit, leading to the loss of approximately $2 million in assets.
In a recent X post, Bedrock’s team noted that it was aware of a security exploit involving uniBTC, a synthetic asset that represents Bitcoin (BTC) on various DeFi protocols.
⚠️Important Announcement from the Bedrock Team
We want to inform you that the Bedrock team is aware of a security exploit involving uniBTC. The issue has been handled and funds are SAFU.
We want to reassure everyone that the underlying wrapped BTCs and BTCs in reserves are…
— Bedrock | Bitcoin Restaking LIVE (@Bedrock_DeFi) September 27, 2024
Bedrock to Compensate Users
On-chain investigations showed that the root cause was miscalculating the ETH-uniBTC price differential, which allowed the attacker to exploit a pricing error in the mint function, draining the $uniBTC pool.
Following the exploit, the protocol’s team stated that a detailed compensation plan is nearing completion and will be released soon, along with a full post-mortem report.
Bedrock further noted that most losses occurred within decentralized exchange liquidity pools and assured that the underlying wrapped BTC tokens and the standard Bitcoin (BTC) held in reserves remained secure.
Since the launch of Bedrock in February 2023 by Singapore-based blockchain firm RockX, the protocol’s website shows that it has prioritized compliance with know-your-customer (KYC) and anti-money laundering regulations. Additionally, the protocol aims to make liquid staking attractive for institutional investors.
Bedrock Hits Over $240M in TVL
According to data from DeFi TVL aggregator DeFiLlama, Bedrock ranks as the eighth-largest liquid staking protocol in the market, with more than $240 million in total value locked (TVL) on its platform. The project maintained the TVL despite the exploit.
Since the launch of the ETH restaking protocol Eigenlayer in April, liquid restaking and native restaking have quickly emerged to become some of the largest market sectors in the crypto industry.
Hackers Targeting DeFi Protocols
In recent times, DeFi protocols have been heavily targeted, leading to the loss of millions of dollars.
Earlier this year, the DeFi project Prisma fell victim to an exploit, losing $10 million worth of crypto assets. Another incident occurred, where DeFi protocol Zeus lost approximately $6 million in a bug exploit.
