Fantom Foundation endorses Axelar and LayerZero bridge solutions amid Multichain concerns

Quick Take

  • The Fantom Foundation reacted to suspicious security incidents involving the Multichain bridge, which saw substantial crypto assets transferred in two separate incidents.
  • The foundation endorsed Axelar and LayerZero as alternative bridge solutions for its network following the issues with Multichain.

The Fantom Foundation is taking decisive action in the wake of a string of security incidents involving the Multichain bridge that saw large amounts of crypto assets moved under suspicious circumstances in two separate incidents. The development led the foundation to endorse Axelar and LayerZero as alternative bridging solutions for the network.

Fantom Foundation recognized the challenges that the incidents posed to liquidity providers, token holders, and users within its ecosystem, saying in a statement that there is no single, officially recognized or “canonical” bridge within the network. It's a reminder to the community of the ecosystem's diversity and flexibility regarding its infrastructure.

It also noted that Axelar and LayerZero are gaining increased traction following the concerns surrounding Multichain.

“Both Axelar and LayerZero are current bridging solutions that are becoming popular choices amongst builders on Fantom,” the foundation tweeted. “FDN [foundation] will continue to assist with awareness and encourage further development options as new assets are issued + adopted on the network.”

The foundation acknowledged that Multichain has historically driven much of the Fantom network’s total value locked and transaction volume, largely due to its early mover advantage. However, given the recent suspicious activities, the foundation is pushing to diversify into other bridge solutions. 

"The Foundation will look to seed both Axelar and LayerZero issued asset pools directly with the bridges themselves to encourage protocol liquidity and confidence," it added.

Multichain's $230 million transfers

A potential exploit earlier this month saw $126 million moved and was followed by another transfer of $103 million in diverse assets. After the initial outflow, Multichain warned users to cease usage of the project and to revoke contract approvals, but a substantial amount of assets remained on the platform.

Growing suspicions of an “inside job” are being entertained by several analysts, including those from Chainalysis, a notable blockchain data analytics firm. The suspicions have been fueled by the disappearance of the Multichain’s CEO, whose whereabouts have remained unknown.

Fantom Foundation said that it's "still waiting for an official statement and guidance from Multichain.”

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