Just In: Ronin Bridge is Open
- All user funds are fully backed 1:1 on the new Ronin bridge. Axie infinity plans to release land staking later this week.
Axie Infinity has announced the opening of its Ronin bridge after three audits. Thus, users can start using the bridge for deposits and withdrawals into and out of the Ronin network.
However, Axie Infinity has warned that the Ronin bridge UI is the only way users should access and use the Ronin bridge for deposits and withdrawals. Any user who sends their funds directly to the Ronin bridge’s contract address will permanently lose their funds.
Details About User Funds And Bridge Refill
On March 29th, 2022, hackers drained 173,600 ETH and 25.5m USDC from the Ronin bridge. Sky Mavis and Axie Infinity resolved to refund all users who lost their funds to the hacking incident.
The Axie DAO Treasury lost 56,000 ETH to the hackers. Hence, the funds will remain undercollateralized till Sky Mavis recovers. Sky Mavis is already working with law enforcement authorities toward recovering the funds.
However, if the funds remain unrecovered within the next 24 months, the Axie DAO will decide what to do with the treasury via vote. Without adding the 56,000 ETH, which the Axie DAO Treasury owns, the total liability left is 117,600 ETH and 25.5 USDC.
Binance has opened its bridge since April 2nd. Thus, Ronin network users have been withdrawing their wETH and converting them to ETH. 46,000 wETH has been transferred since that time. That amount was from Axie Infinity’s remaining balance and the founding team.
Thus, enabling Ronin network users to swap their wETH for ETH. Axie Infinity received 46,000 wETH from Binance. Thus, Ronin network users were able to deposit wETH and withdraw ETH. However, Axie Infinity has taken out these funds from circulation by transferring them to a burn address on the Ronin network.
Sky Mavis will fully reimburse the balance of 71,600 ETH and 25.5M USDC in liabilities. Hence, users can receive their total funds. All wETH and USDC owned by users on the Ronin network are backed by an equal amount of ETH and USDC on the Ethereum network.
A New Governance Process And Withdrawal Limits
Henceforth, a decentralized voting process will complete governance on the Ronin network. Governors will have the power to vote for modifications like upgrade contracts. Based on the design of this mechanism, only one governance vote can hold at each time.
Also, a new vote cannot hold until the previous one is completed. One way to understand this governance process is to liken the governor to a cold wallet. Then, one can liken the validator to a hot wallet. As a temporary measure, Axie Infinity will be introducing a Ronin circuit breaker system to limit withdrawals.
The blog post announcing the bridge’s opening contains details about the withdrawal thresholds. Also, the team has upgraded the bridge’s smart contract software. One of the new features enables validators to set a daily withdrawal limit. Validators can reset this limit every day. Axie Infinity will continue to make more efforts to improve the security of the Ronin bridge.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
