It will take “at least two days” to restore the operation of the Osmosis blockchain platform, which has been unable to process transactions for a day due to an exploit. Users will be reimbursed for lost funds, the project team said.
On May 8, the blockchain suspended block production due to a vulnerability that could have drained Osmosis DEX liquidity pools. The project team estimated damage at about $5 million.
The developers confirmed that the exploit was made possible due to a bug present in the Osmosis v9 update, which was activated on May 7th.
The error consisted of the incorrect calculation of the shares of liquidity providers when depositing and withdrawing assets from pools. It was skipped at the stage of internal testing of the update.
“The core Osmosis development team takes full responsibility for this oversight. This means that the strategic reserve, and not the community pool, takes responsibility for any lost funds.
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The developers plan to partially cover the losses by returning the funds withdrawn through the vulnerability. The team identified 4 addresses that account for over 95% of the exploit's implementation.The owners of two of them are ready to return the funds in full, the rest interacted with centralized exchanges. The developers passed the "relevant information" to the last.
FireStake, a staking service for delegates of the Cosmos ecosystem, announced its readiness to return assets. Two of its users "turned $226,000 into $2 million" during "exploit testing."
“We are currently working with the Osmosis team to get the funds back as soon as possible. We also urge everyone else who took advantage of the situation to get in touch and return the assets,” FireStake said in a statement.
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According to the developers, they are testing the Osmosis v10 update. It is assumed that after its release, the blockchain will resume work.“While the estimated timeline may change, it is anticipated that this will take at least two more days,” they wrote.