July 21, 2021
The Next Steps for THORChain
THORChain has outlined the final steps to bringing the network back online, resolving the insolvency, and future attack mitigations.
The THORChain team has finalized the remaining steps that will be taken to resume full operations. This involves a series of updates to THORNode code, replenishing the missing ETH, and outlining a plan for preventing such exploits in the future.
- v0.61 includes chain-specific halting abilities, so the entire network doesn’t need to be shutdown in the event of an isolated chain incident.
- v0.62 is a simple store migration.
- v0.62.1 allows bifrost to sign UTXO transactions, resuming trading on non-ETH chains.
- v0.63 includes an insolvency detection feature that auto-halts the network when a discrepancy between how many tokens the protocol has and how many it expects to have is found. This will stop most exploits dead in their tracks before major damage can occur.
- v0.63 will also resume trading on ETH chain, including ERC20s.
You can view node status at thorchain.net to monitor the update progress. There is no official ETA for when full trading will resume, but it is expected to take around 36-48 hours.
Resolving the ETH Insolvency
A series of proposals were put together from the community. The core team has processed these, and come up with the following plan:
- 1/3 purchased immediately via USDC from the treasury.
- 1/3 loaned via Cream’s Iron Bank, paid off over the course of a few months via OTC sales as RUNE price recovers.
- The two above steps are sufficient to balance the ETH pool and reprice the assets correctly.
- Finally, 1/3 will be paid via treasury RUNE being added directly to the pool, balanced out into ETH via arbitrage. This can be done gradually to adjust for LP withdrawals and market price changes.
Source: THORChain Twitter
- TrailOfBits will be conducting an audit of THORChain code.
- Halborn Security will be conducing a thorough audit as well, and has also proposed an “Always On” exploit detection service that would employ multiple white-hat hackers to constantly attempt to find holes in the network.
Once all of the above is complete, the THORChain developers and the rest of the community will be able to get back on track with upcoming features like synthetics, additional chain integrations, and more.