This afternoon, the world’s largest exchange stopped deposits of 10 crypto tokens bridged to Binance Crypto exchange Chain, Ethereum (ETH), Avalanche (AVAX), and Fantom.
Multichain has deposits worth $1.52 Billion locked on it for liquidity provisions, per DeFiLlama. This week’s events caused a slight dip in its total value locked (TVL) from $1.6 Billion to $1.52 billion.
“We’ll be temporarily suspending deposits for the next bridged tokens-network while we await clarity from the Multichain team,” wrote Binance.
We’ll be temporarily suspending deposits for the next bridged tokens-network while we await clarity from the Multichain team.
Deposits of the over assets on other networks are…
— Binance Crypto exchange (@binance) May 25, 2023
A Multichain wrapped investment is locked up in a Multi-Party Computation (MPC) node on the source chain, and then a corresponding wrapped investment is minted on the target chain. An MPC node is a digital gateway controlled by specific wallets whose private key is divided, encrypted, and shared betwixt numerous parties.
Users informed issues related to Multichain’s zkSync, Kava, and Polygon zkEVM bridge, where transfers to these networks have been stuck since May 21.
The Multichain team informed users via a Twitter post yesterday that “pending transactions will be credited automatically” and that they are forming a compensation strategy for influenced users.
Although while most of the cross-chain routes of Multichain protocol are functioning well, some of the cross-chain routes are unavailable due to force majeure, and the time for service to resume is unknown. After service is restored, pending transactions will be credited automatically.…
— Multichain ( Previously Anyswap) (@MultichainOrg) May 24, 2023
Multichain co- founder DJ Qian said this morning that he was likewise in talks with the bridging project’s CEO to fix the issue