Osmosis is back up after a flaw that led to a liquidity exploit was fixed.
The chain was stopped to prevent additional harm to liquidity pools after an Osmosis issue “enabled liquidity providers to gain an extra 50% while adding and withdrawing liquidity.” After a problem was disclosed on Reddit the week of June 6, $5 million of the liquidity pools of the decentralized exchange on the Cosmos ecosystem were drained. The Osmosis team declared that, in case of need, the developer fund will pay for all losses. To stop more losses, the Osmosis team broke the chain. The team declared it was committed to “ensuring this never occurs again” while the chain remained offline. The team required to do a “full retrospective on secure development methods” and update “security policies to assure the quality and safety of Osmosis” in order to restart the chain.
On June 9, Osmosis staged OsmoCon at Consensus in Texas, closing the chain for the occasion. On June 10, a restart was planned at 4:00 PM UTC. The Osmosis Twitter account did not make any announcements, but it appears the platform is operational again. The first five epochs should have seen the publication of any prizes that were due to be given out during the downtime.
Since the chain went back up, a few users have had problems with the site. However, CryptoSlate tested the switch capability, and as of June 12, 9:00 PM GMT, it was functioning as expected. Once all problems are fixed, the Osmosis team wants to “provide more in-depth study of what transpired.” If there are no issues after restarting the chain, users may anticipate this in-depth review later this week.
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