MegaETH to return all funds from pre-deposit bridge, citing ‘sloppy’ execution
MegaETH is returning all funds from its pre-deposit bridge due to 'sloppy' execution marred by outages and configuration errors.Summary
MegaETH, an upcoming Ethereum Layer 2 scaling solution, announced it will return all capital raised from its Pre-Deposit Bridge because the execution was "sloppy" and failed to align with the goal of preloading collateral for a guaranteed 1:1 USDm conversion at mainnet.
The launch of the pre-deposit bridge for its native stablecoin, USDm, on Tuesday was troubled by outages, fluctuating deposit caps, and a critical misconfiguration. An operational issue with a third-party bridge caused an hour-long outage. After service restoration, the initial $250 million cap was filled in under three minutes, prompting a decision to raise the cap to $1 billion.
However, a multisig transaction intended to increase the cap was incorrectly configured with a 4-of-4 signature requirement instead of 3-of-4, allowing an external party to execute it prematurely. This led to deposits exceeding $400 million before the team could reset the cap. MegaETH stated that the smart contract for refunds is currently under audit, and funds will be returned shortly after. The team also plans to reopen the USDC/USDm conversion bridge before the Frontier mainnet beta launch to build liquidity.
(Source：The Block)