Security concerns found in Ethereum L2 solution Blast: Resonance Security
The post Security concerns found in Ethereum L2 solution Blast: Resonance Security appeared on BitcoinEthereumNews.com.
Blast, the new Ethereum Layer 2 solution, has some security concerns, according to a research report by cybersecurity company Resonance Security. Blast has quickly gained traction in the crypto industry. It promises points, airdrops, jackpots, native staking yields, and gas revenue sharing. But Resonance says Blast should improve its security measures. From its announcement to its launch, Blast accepted ETH deposits through a one-way bridge. This allowed users to accumulate native yield and Blast Points, promising early adopters entry into a future airdrop. Source: L2Beat Despite criticism from major financial backers like Paradigm, this strategy boosted Blast’s popularity. It attracted $600 million in its first week, reaching over $1 billion by January 2024. As of now, Blast’s total value locked (TVL) stands at $3.16 billion, making it the fourth-largest EVM L2. Users can deposit ETH onto Blast in exchange for liquid L2 tokens. The deposited ETH is staked in Lido staking pools via Blast smart contracts, earning a 4% interest rate. For stablecoins, users bridge them to Blast for USDB, Blast’s official stablecoin, which generates yield through MakerDAO’s T-bill protocol with a 5% interest rate. USDB can be redeemed for DAI when bridged back to Ethereum. Blast Gold is awarded to dApps built on the chain, rewarding them for using Blast-native features, and is distributed manually every 2-3 weeks or during jackpot events. Blast inherits security concerns According to Resonance, Blast’s reliance on third-party DeFi protocols like Lido and MakerDAO introduces potential risks. If any yield-generating pools or protocols on these platforms are compromised, the associated tokens of Blast users will also be affected. This dependence on Lido and MakerDAO’s security to protect users’ funds could lead to financial issues for Blast users. How Blast’s smart contract works. Source: L2Beat Previously, HTX Square pointed out that Blast’s LaunchBridge contract (0x5f…a47d)…
Filed under: News - @ June 27, 2024 2:18 pm