Users of the Guardian service can choose to designate wallets of trustworthy people or businesses to help with security activities such as lock-in of a compromised wallet or restoration of one should the seed phrase disappear. Loopring revealed in its release that a hacker broke through company’s own Official Guardian system to start recovery on wallets using that one guardian without the users’ authorization. According to company’s website, wallets that used multiple guardians or another third-party guardian were shielded from the vulnerability, as more than 50% of guardians are required to start transactions.

Loopring’s 2FA Compromised, $5M Stolen

Loopring also revealed two wallet addresses identified by the protocol allegedly engaged in the security violation. Blockchain records reveal one wallet was able to empty the impacted wallets of around $5 million worth of tokens.

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“We are working closely with Mist security professionals to ascertain the source of the compromise of our 2FA system. We have momentarily stopped Guardian-related and 2FA-related activities in order to safeguard our users. After this action, the compromise stopped,” the protocol said in its X statement. The block couldn’t loop right away for comments.

Loopring has asked that anyone with further knowledge about the attack forward it to the protocol and mentioned that it’s working with law enforcement to track the offender.

Although the attack probably caught the team off guard, Loopring’s risk disclosure statement points to a breach of its Guardian system as a possible attack path and advises users to find at least three guardians. “We will automatically add the Loopring Official Guardian service to your wallet after it is generated. Loopring Official Guardian is a centralized service, so hackers could target and control it.” company’s website says.

The post Ethereum’s Loopring Hacked, Guardian System Breached appeared first on Coin Engineer.

Base Surpasses OP Mainnet to Become Largest OP Stack-Based Layer 2 Network

According to DeFiLlama data, the network’s total value locked (TVL) has increased by 20% since the beginning of May to $1.7 billion.

Launched to the public in early August 2023, Base’s mainnet positioned itself as the third most valuable Layer 2 blockchain in terms of TVL, trailing Arbitrum’s $3.81 billion and Blast’s $2.26 billion.

This significant milestone highlights Base’s rapid growth and increasing adoption among decentralized applications (dApps).

The network’s prominence has been largely fueled by the decentralized exchange Aerodrome, which has contributed $714 million in deposits. Uniswap follows as the second-largest contributor with $312 million.

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Base Places Itself at the Forefront of the Superchain Ecosystem

These developments place Base at the forefront of the Superchain ecosystem, an interconnected Layer 2 rollup network built using the OP Stack software suite.

This ecosystem aims to enhance Ethereum’s scalability and efficiency by executing transactions off-chain, thereby reducing the burden on the main Ethereum blockchain.

Base Utilizes an Optimistic Rollup Model

Base, along with other optimistic rollups like Arbitrum, Blast, and OP Mainnet, operates by assuming all transactions are valid by default and only verifying them when fraud proof is presented.

This approach contrasts with zero-knowledge rollups like zkSync, Loopring, and Scroll, which provide cryptographic proofs for transaction validity upfront.

What Base’s Growth Means for the Ethereum Ecosystem

Base’s impressive growth and strategic integration within Superchain underscore its potential to drive further innovation and scalability within the Ethereum ecosystem.

The post Coinbase-Developed Project Surpasses OP Mainnet to Become Largest Layer 2 Network! appeared first on Coin Engineer.