Liquid restaking protocol Bedrock suffers $2M exploit

Multi-asset liquid staking protocol Bedrock has confirmed it has fallen victim to a “security exploit” involving uniBTC, with hackers making off with around $2 million in funds

In a Sept. 27 post to X, Bedrock said it was aware of a security exploit involving uniBTC—a synthetic Bitcoin token used in DeFi — that resulted in the loss of approximately $2 million in assets

The restaking protocol said the issue had been “handled” adding that its team was taking steps to address the root cause. It reassured users that all remaining funds were safe and they would be issuing a reimbursement plan in the near future

Source: Bedrock

“A comprehensive reimbursement plan is being finalized and will be shared shortly together with a post-mortem report,” Bedrock added.

Bedrock said most of the losses were incurred in decentralized exchange liquidity pools and clarified that the underlying wrapped BTC tokens and standard Bitcoin (BTC) held in reserves were secure

Cointelegraph reached out to Bedrock for further comment.

Bedrock is a multi-asset liquid restaking protocol that offers products such as uniBTC, uniETH, and uniIOTX, synthetic representations of major blockchain tokens that allow users to earn yield through staking

Related: How liquid restaking tokens are revolutionizing DeFi

Launched in February 2023 by Singapore-based blockchain firm RockX, Bedrock is designed to attract institutional investors with large sums of capital to liquid staking, prioritizing strict KYC and AML compliance.

According to DefiLlama data, Bedrock is the eighth-largest liquid staking protocol on the market, with just over $240 million in total value locked (TVL) on its platform

Bedrock touts over $240 million in TVL. Source: DeFiLlama

Liquid restaking and native restaking have rapidly grown to become some of the largest market sectors in the crypto industry following the launch of the ETH restaking protocol Eigenlayer in April

Liquid restaking protocols now boast over $11.4 billion in TVL, while Eigeinlayer itself touts more than $12.1 billion in TVL on its mainnet, per DefiLlama.

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