Liquid restaking protocol Bedrock adopts Chainlink Proof of Reserve after $2M exploit

Mila September 27, 2024

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Key Takeaways

Bedrock integrates Chainlink Proof of Reserve following a $2M uniBTC exploit.
Chainlink’s platform supports over $15 trillion in transactions, enhancing Bedrock’s security layers.

Bedrock, a multi-asset liquid staking protocol, is adopting Chainlink Proof of Reserve (PoR) to enhance its minting function’s security after the protocol was hit by a security breach that led to a $2 million loss in assets today, said the team in a recent statement.

The team said the move would help fortify the Bedrock protocol against future exploits. Chainlink’s PoR, trusted by the leading asset manager 21Shares, will provide automated and verifiable onchain checks to ensure the correct backing of reserves, preventing malicious minting and protecting against manipulation, Bedrock stated.

“Integrating Chainlink Proof of Reserve is a critical step in fortifying our protocol and helping ensure the utmost protection of user funds,” Zhuling, a core contributor at Bedrock, said, adding that the integration plays an important role in ensuring security and transparency of Bedrock’s minting function.

Chainlink’s platform, which has facilitated over $15 trillion in transactions, will also provide multiple layers of decentralization and increased transparency for Bedrock’s operations, Bedrock added.

“Proof of Reserve will secure the minting function for uniBTC, taking a critical step in securing this asset, while providing users with full transparency around reserves,” Johann Eid, Chief Business Officer at Chainlink Labs, said.

“With the explosion of tokenized assets in our space, Chainlink’s real-time, automated verifications help prevent security exploits related to overminting, hence building trust and safeguarding against vulnerabilities,” he noted.

Launched by RockX in February 2023, Bedrock is the eighth-largest liquid staking protocol with $229 million in TVL as of September 27, DefiLlama data shows.

The security exploit involving Bedrock’s uniBTC was reported earlier today. Following the incident, the protocol assured users that remaining funds were safe and it was finalizing a reimbursement plan and would soon release a detailed post-mortem report.