Radiant Capital Reopens Lending and Borrowing Markets on Arbitrum After Security Review
Radiant Capital has reopened its lending and borrowing markets on Arbitrum following a thorough security review. The decision to resume operations came after addressing the security breach that resulted in a loss of $4.5 million in Ethereum. The review was conducted by OpenZeppelin, independent Ethereum researchers, and white hats.
Enhanced Security Measures Implemented
In order to prevent similar incidents in the future, Radiant Capital has implemented additional safeguards and enhanced security protocols. Users are now able to utilize all available lending and borrowing markets, with native USDC being brought live soon pending further reviews.
Snapshot Proposal for Debt Repayment
To resolve any financial discrepancies caused by the pause, Radiant Capital plans to propose a Snapshot proposal for the DAO. This proposal will outline the methodology for repaying excess debt and fully recapitalizing the Arbitrum WETH market.
Gradual Return to Normal Operations
During the resumption of operations, the liquidation bonus will initially be set at the lowest level possible to allow users time to improve health scores. Over the next 24 hours, the bonus will gradually return to normal levels.
Hacker Drains $4.5 Million Ethereum
Radiant Capital experienced a security breach resulting in a loss of 1,900 Ethereum tokens within seconds after deploying a new USDC market. PeckShield Inc., a blockchain security company, revealed that the exploit took advantage of a time window during the activation of a new lending market and relied on a known rounding issue in the Compound/Aave codebase.
Hot Take: Radiant Capital Resumes Arbitrum Markets Operations After Security Breach
Radiant Capital has reopened its lending and borrowing markets on Arbitrum after conducting a thorough security review. Additional measures have been implemented to enhance security and prevent future incidents. The company plans to propose a Snapshot proposal for debt repayment to address any financial discrepancies caused by the pause. During the resumption of operations, users will have a grace period to improve health scores before the liquidation bonus gradually returns to normal levels. However, Radiant Capital experienced a security breach that resulted in the loss of $4.5 million in Ethereum. The exploit took advantage of a time window during the activation of a new lending market and exploited a known rounding issue in the Compound/Aave codebase.
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