Cross-Chain Bridge Overloaded, Multichain Token Drops

Cross-Chain Bridge Overloaded, Multichain Token Drops


Multichain’s native token, MULTI, experiences a significant drop in value as users report stuck transactions, prompting the team to assure customers that their funds are safe and they’re working to resolve the issue.

The native crypto token powering the cross-chain bridge Multichain plummeted today after users began sharing that some of their transactions had been stuck since Sunday.

Nevertheless the team assured that funds are safe and they’re working to solve the issue.

Multichain— previously known as Anyswap—is a decentralized cross-chain protocol that eases the exchange of different digital currencies across numerous blockchain tech networks.

By leveraging smart contracts and decentralized liquidity pools, Multichain lets networks like Ethereum, Binance Crypto exchange Smart Chain, Polygon, and others interact with each other.

MULTI was down 29.4 percent in the previous day, last currently worth $5.02, per CoinGecko data.

The  challenge began on Sunday when Multichain’s Telegram group was flooded with user complaints of pending transfers.

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1 user message read, “looks like I am not alone,” adding that their Arbitrum to zkSync transfer was still “confirming” for hours.

David Who, a Multichain community manager, wrote in a Telegram message on the same day that the “bridging service on one of our routers was not well functional [sic].”

A Multichain router is an intermediate automated function that determines the appropriate path or route for the investment transfer according to the liquidity pools.

The group has confirmed that one of the “routers” on the bridge was influenced. They’re upgrading the RPC-backend node to fix the issue.

An RPC node acts as the gateway or interface betwixt the Ethereum (ETH) network and Web2. It provides a set of APIs (Application Programming Interfaces) that allow clients to interact with the Ethereum (ETH) network.

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Reports by the list of addresses shared with Decrypt via Telegram, the influenced pools have 3,975 Ethereum (ETH), worth around $7 million in zkSync and over $322,000 in USDC. Polygon zkEVM USDC pool has around $1,330 worth of USDC in it.

Kava is a Cosmos-based Layer-1 blockchain tech focused on DeFi applications like crypto stablecoin minting.

zkSync and Polygon zkEVM are Ethereum (ETH) layer-2 solutions according to zero-knowledge proof technology. These two are relatively new blockchains teck launched in March 2023.

Who also mentioned that ” at this point, we can’t be sure when it will be fully fixed. Nonetheless, our user’s funds are safe,” and pending transactions would “pass through automatically and instantly” after resolution.

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On May 22, a moderator notified the community about temporarily suspending “some bridges which were causing pending transactions to avoid new lagging transactions.”

The next day another community manager Sylvia wrote that ” recovery is expected within the following 24 hours.”

72 hours since the 1st report of pending transactions came out, transfers continued to be delayed.

Source

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