If you have not been following the situation. An unknown entity took control of Multichain’s FTM vaults which back users bridged funds on Fantom. This led to Multichain’s bridge being exploited draining over $130m of funds to be stolen & moved to an unknown EOA. $3.5m of these tokens include users bridged UNIDX from Optimism & Fantom.
On all chains except Arbitrum, we recommend all users remove funds tied to any smart contract such as LPs, staking protocols, pending limit buys & sells, and user-built contracts. LPs on these affected chains are at risk for 100% loss not only from the Multichain exploiter but also from people selling all their old UNIDX token post snapshot.
Our plan is to snapshot users' holdings, deploy a new UNIDX token on ETH, and distribute identical balances to users' wallets based on the snapshot. We're working with Synapse to have a new Optimism UNIDX token, and we're looking to get a replacement deployment on all other affected chains (which is all chains except Arbitrum).
(Note, Arbitrum users are already using a synapse bridged UNIDX so they are completely unaffected by the situation before & after the snapshot. Arbitrum holders don’t need to do anything at all and when the new UNIDX token is deployed, when bridging back to ETH you’ll automatically receive the new UNIDX token.)
We’ve determined that the best time to take the snapshot is shortly after Velodrome’s epoch flip as this is when we expect most people to withdraw their liquidity or take note of the warnings. By this Wednesday, the farming APR would be basically 0% and most people will manage their liquidity as they normally do each week.
We expect a snapshot taken between this Friday and Saturday, as LPs will have had more than enough time to react, migrate, and take necessary actions to protect their holdings. All balances will be recorded, and the new UNIDX token will be airdropped to you based on the snapshot. We will not be waiting any longer than this so practice caution if you want to be in the LP.
The new UNIDX token retains the same properties as the previous one, with slight changes. We have decided not to include any minting or burning functions, nor the ability to pause or any other centralized powers just like before. While this may make things difficult in situations like the one we are experiencing now, we believe it is vital to reduce the risk of smart contract failure, external influence, and possible exploitative practices. We are undergoing an audit while we wait for the epoch and expect it to be completed today. It is a simple audit, as it is a fairly basic implementation of a standard ERC20 token, so this will not hold back the migration at all. Some new modern practices have been added such as permits and allowance management allowing for things like gasless approvals like you may have seen when swapping DAI on Uniswap.
We’re already in contact with all partners and data providers like CoinGecko and they’re aware of the upcoming new addresses on all chains except Arbitrum (as Arbitrum is un-affected). We expect a quick turnaround to get pages updated but some platforms have been unreliable in the past so we’ll be trying our best.
At the current moment, we don't see ourselves requesting a deployment to low-activity chains such as Boba ETH and Metis. So, post-migration, we will initially only have the UNIDX token on ETH, Arbitrum, Optimism, Fantom, zkSync, and various L2s in preparation for our upcoming whitelabel partners.
Thats all for now! Just note that the situation is very volatile and things can change at any moment. Even as we post this, the multichain team as communicated that they have statements they're issuing soon & plans. While at the same time another $80m worth of bridge funds have been moved out of vaults. We’re also making a post about the perps platform on Fantom and what multiUSDC & multiDAI poolers and traders should do in the upcoming week. The short story is that we’ve reduced the withdraw tax to 0, reducing the deposit time to 0, and pausing new opening trades using multiUSDC. We’re partnering with LayerZero to use lzUSDC as the LP for perps on Fantom moving forward.
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