Liquid Meta Capital Holdings Ltd., a decentralized finance infrastructure and technology company focused on bridging the gap between traditional and decentralized finance, provided an update on its exposure to a decentralized exchange (DEX) that is part of the Ronin blockchain ecosystem, owned by Sky Mavis.
On March 29, 2022, the Ronin Network announced a security breach whereby the Sky Mavis’ Ronin validator nodes were compromised, resulting in 173,600 Ethereum and 25.5M USDC being drained from the Ronin bridge in two transactions. As a result of the hack, certain DEX’s and the Ronin blockchain were halted and the support teams of the Ronin blockchain immediately attempted to try and recover these funds. The funds that have been compromised on the bridge serve as collateral to a portion of the assets held on the Ronin network, and if this collateral is not recovered it could have an impact on the price of these assets.
Recommended AI News: Blackline Safety Acquires IoT Expert Swift Labs to Expand Connected Worker Portfolio
Liquid Meta has provided liquidity to a liquidity pool on a DEX that exists on the Ronin blockchain, and which is interconnected to the bridge that experienced the security breach. This DEX is currently halted pending an update by Sky Mavis and the Ronin teams.
“Although we did not have any direct exposure to the hack on the Ronin bridge, Liquid Meta has approximately $2.3 million of exposure on the Ronin network DEX,” said Jonathan Wiesblatt, CEO of Liquid Meta. “This represents approximately 10% of our total liquidity deployed, in line with our ongoing deployment strategy and internal risk criteria and, as a result of which, we wanted to provide this update to the market. There is currently an active investigation into the breach and Ronin, Axie Infinity/Sky Mavis are in the process of outlining how to best move forward. It is important to note that our liquidity on the Ronin network DEX is currently safe while Sky Mavis and the team at the Ronin Blockchain work to resolve the issues with the breach.”
Mr. Wiesblatt also stated “Liquid Meta’s mission is to deliver access and transparency to the world of DeFi. We are aware of the risks that are part of this nascent industry. Even though our risk assessment of the blockchain and DEX met all our internal risk criteria and controls, we acknowledge we are also part of a larger ecosystem that is interconnected. The Company will provide additional updates as they are received and when appropriate.”
Recommended AI News: Moloco Names Dharti Patel as Chief Accounting Officer
[To share your insights with us, please write to sghosh@martechseries.com]
Comments are closed.