Osmosis Team Sets Timeline for Platform Restoration

Restoring the Osmosis blockchain platform, which has not been processing transactions for a day due to a vulnerability, will require “at least two days.” Users will be reimbursed for lost funds, the project team said.

Thank you for being patient as the core teams have been heads down dealing with the situation.

The following is the latest information related to the bug and subsequent chain halt.

— Osmosis 🧪 (@osmosiszone) June 8, 2022

On June 8, the blockchain halted block production due to a vulnerability that could have led to the depletion of Osmosis DEX liquidity pools. The project team estimated the damage at around $5 million.

Developers confirmed that the exploit became possible due to a bug present in Osmosis v9, which was activated on May 7.

The bug lay in the incorrect calculation of liquidity provider shares when adding and removing assets from pools. It slipped through during internal testing of the update.

“The core Osmosis development team takes full responsibility for this oversight. This means that the strategic reserve, not the community pool, will bear responsibility for any lost funds,” the statement said.

The developers plan to partially cover losses by reimbursing the funds withdrawn via the vulnerability. The team identified four addresses that accounted for more than 95% of the exploit’s activity.

Owners of two of them are ready to return the funds in full; the remaining ones have interacted with centralized exchanges. The developers have provided the ‘relevant information’ to the latter.

— The remaining 2 individuals have txs to/from CEXs

— Exchanges have been been contacted with the relevant information with the goal of identifying the exploiters and potentially recover the funds.

— Osmosis 🧪 (@osmosiszone) June 8, 2022

The Cosmos staking service for delegates — FireStake — announced its readiness to return the assets. Two of its users “turned $226 000 into $2 mln” during “exploit testing”.

to return the funds as soon as possible. We’re also working with the Osmosis team to encourage anyone else who took advantage of this situation to please come forward and return funds.

You’re welcome to come to us, and we can help act as a liaison. We need to make this right.

— FireStake | Validator (@stake_fire) June 8, 2022

“We are currently working with the Osmosis team to return the funds as soon as possible. We also urge everyone else who took advantage of the situation to come forward and return the assets,” FireStake said in a statement.

The developers say they are testing Osmosis v10. It is expected that once released the blockchain will resume operations.

“While projected timelines may change, it is expected to take at least another two days,” they wrote.

In May 2022, the Wormhole paid $10m to a white-hat hacker, who discovered a critical vulnerability in the cross-chain protocol.

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