- Liquidity protocol takes another pause to clear up potential vulnerabilities.
- THORChain has halted activities on its network before.
- THORChain decides to pause activities as a precautionary measure.
- The network asks users to hold for more information as it pauses the network.
Cross-chain liquidity protocol THORChain has once again decided to pause activity on its network due to reports of claims of a potential vulnerability on the network. This is not the first pause that the network has undergone in recent times.
The network decided as a precautionary measure while it ensures that the reported vulnerability has been verified and nullified.
The decision was announced on Twitter in the early hours of the day and claimed that the potential vulnerability with a THORChain dependency could significantly impact the network. They decided to take the route of pausing activities while they sealed all possibilities of said vulnerability.
The announcement also came shortly after reports on social media claimed that THORChain’s liquidity platform Nine Realms and their dedicated security team THORSec had received credible reports of a possible vulnerability crippling THORChain, and the network instantly decided to shut down globally.
While the network decided to halt activities, the native token for THORChain, Rune, took a 5% tumble, according to data reported by CoinGecko. The token trading has decreased by $1.32 and is reportedly down by 18% over the past month.
THORChain is a decentralized cross-chain liquidity protocol that was established in 2018. It allows users to swap their assets between different blockchain networks without using a centralized exchange.
The settlement layer for THORChain currently offers Ethereum, BNB chain, Avalanche, Cosmos, Litecoin, Bitcoin, Bitcoin Cash, and Dogecoin.
This current half on THORChain’s network is not the first pause the network has taken, it’s a first pause on network activities was back in October 2022 due to software that had been causing non-determinism between individual nodes on the network, but the delay only lasted 20 hours as the network resumed and was fully functional after almost a day of maintenance.
THORChain was also on a short pause in 2021 after it had suffered a breach and a loss of $7.6 million in crypto assets by hackers. However, with the certainty that this vulnerability needs to be clarified, there is no knowledge of when the protocol will resume its network activities. Still, in their recent Twitter post about the reported potential vulnerabilities, THORChain asked customers to stand by for more information.
Suppose THORChain can pick out the potential vulnerabilities quickly. In that case, maintenance can be carried out to protect the protocol, and activities can go on as usual. Still, it is for the network’s and its users’ good if the vulnerability can be detected and fixed before it ruins anything.
Since this isn’t the liquidity protocol’s first halt in activities due to a threat in its network, there should be enough experience to quickly fix a danger like this so activities can go on as usual.