Following a bug in Osmosis that “allowed liquidity providers to earn an additional 50% when adding and withdrawing liquidity”, the chain was halted to avoid further damage to liquidity pools.
A decentralized exchange in the Cosmos ecosystem lost $5 million in liquidity pools after a bug was posted on Reddit on June 6. The Osmosis team announced that all losses will be covered by the developer’s fund, if necessary. Team stated:
“The error itself was simple and consisted of incorrectly calculating the shares of LP when adding and removing liquidity from pools. It had to be caught. This was painfully overlooked in internal testing, which focused on more advanced update-related functionality.”
The Osmosis team stopped the chain to prevent further losses. While the network was down, the team announced that it was dedicated to making sure “it never happens again.” To restart the chain, the team needed to update “Osmosis quality and safety security protocols” and “a comprehensive retrospective of secure development processes.”
Restarting the chain
Osmosis hosted OsmoCon at Consensus Texas on June 9th, meaning the network was down during the event. Its relaunch was scheduled for 16:00 UTC June 10. There have been no announcements via the Osmosis Twitter account, but it looks like the platform is back online. Any rewards that were to be given out during the downtime had to be published within the first five eras. Osmos published the following information:
The Osmosis validators plan to restart the network on Sunday at 16:00 UTC with a new heavily tested version.
The first 5 blocks will be “epoch blocks” giving rewards during downtime.
Due to consecutive epochs, “regular blocks” can take up to 90 minutes to process from start.
— Osmosis 🧪 (@osmosiszone) June 12, 2022
Persistent problems with osmosis
Several users have had issues with the platform since the network went back online. However, Cryptooshala tested the exchange feature, which was working properly as of June 12, 21:00 GMT.
Mine went through without a problem.
— ⚛️Bean⚛️ (@GimmeDatBean) June 12, 2022
The Osmosis team intends to “share a deeper analysis of what happened” once all issues are resolved. Users can look forward to this in-depth analysis later this week if any issues that may arise after the chain restart are resolved.
Credit : cryptoslate.com