- Validators received faulty data in a “very rare edge case,” leading them to vote in favor of an emergency downtown on the Hyperliquid bridge to Arbitrum.
- An incident report states that customer funds were not in danger throughout the roughly four hours that the lockdown lasted.
One of the most well-known decentralized perpetual exchanges, Hyperliquid, has released an incident report outlining the reasons for Monday’s bridge outage.
A developer going by the handle iliensinc claimed to have discovered an incredibly unusual edge scenario in which several RPCs—acronym for Remote Procedure Calls, which are the protocols used to link users and apps to blockchain nodes—were provided with inaccurate data.
About an hour after it was reopened, there was another brief period of lockdown. The procedure makes sure that the L1 and Arbitrum states are synchronized and depends on numerous significant Arbitrum RPCs. On Discord, iliensinc posted.
In such crises, only two validators must vote to lockdown the protocol, while all four validators who are now in operation voted to temporarily close the bridge, according to Hyperliquid’s documentation. Theo Network’s Abhi Pingle stated on X that this appears to be a positive thing.
Iliensinc pointed out that customer funds are expected to be preserved and that the locking mechanism is intended as a last resort to avoid exploitation, which would be a considerably worse outcome than the occasional outage.
To stop the same false positive from happening again, the monitoring procedure is being improved. They said that all user monies are secure.
This seems to be the first instance of downtime that Hyperliquid, a protocol that has a locked value of about $700 million, has seen since going live last year.
Hyperliquid, like many other recent DeFi initiatives, used point systems to reward users with tokens in order to bootstrap growth.
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