Multichain Failure Hits Fantom DeFi
The cross-chain protocol Multichain suffered a huge setback, significantly disrupting Fantom’s decentralised finance (DeFi) efforts. Fantom Foundation has been working to reassure people about its relationship with the Multichain protocol since the issue first surfaced in May.
However, early indications imply that the Multichain issues have had a significant impact on Fantom’s DeFi operations, resulting in asset depegging and projects shutting down.
Bitcoin, USDC, Ethereum, and several stablecoins bridged via Multichain on Fantom have become significantly depegged from their genuine values.
Web3 Knowledge Graph Protocol This mismatch was discovered by 0xScope in early June, following the illegal transfer of $126 million in Multichain user cash to unidentified addresses. The majority of the stolen assets came from the Fantom Bridge.
0xScope showed how traders were disposing of their Fantom-based stablecoins at a loss. One trader allegedly lost roughly $200,000.
(With inputs from Shikha Singh)
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