Flamingo Finance has restored its cross-chain functionality after a two-month interruption. This service disruption stemmed from a security breach on Poly Network, the cross-chain protocol Flamingo uses.
On July 2, there was an attack on Poly Network, the cross-chain bridge Flamingo utilizes for cross-chain transactions such as wrapping and unwrapping assets from one blockchain to another. Flamingo was able to quickly determine that the attack neither impacted the Neo network nor any assets housed on Flamingo. However, the cross-chain services were momentarily paused by Poly Network, leading to a similar suspension on Flamingo.
During the period stretching from July 2 to Sep. 6, Flamingo users were unable to execute cross-chain asset transactions. Sep. 6 witnessed the resumption of Flamingo’s cross-chain functions for the Ethereum network, while service for Binance’s BNB Smart Chain was restored on Sep. 11. Cross-chain functionality for the Ontology network is still suspended, after being brought back online prematurely on Sep. 6.
Flamingo expressed appreciation for the community’s patience and understanding during the hiatus. The team also reiterated its commitment to user security, stating in a Medium post, “Although it took some time, we are delighted that none of our users’ assets on Flamingo were affected by the attack and are incredibly grateful to be built on one of the only blockchains that have never been attacked, Neo N3. Safety and security will forever be our number one priority.”
Flamingo also indicated that the attack has the team reevaluating plans to expand cross-chain functionality to other systems via Poly Network. In a conversation with NNT on Discord, Adrian Fjellberg, a lead maintainer of Flamingo Finance, wrote, “We were considering adding other assets on Ethereum and BNB chain but after the incident we need to take a more holistic look at how we solve cross chain instead of doubling down with one cross chain solution/provider.”
According Fjellberg, the team is considering THORChain as an alternative. Investigations into the technical details and feasibility are in the early stages, but the team believes integration would require THORChain to add NeoVM support, and would welcome help from the broader Neo community to make this happen. Fjellberg wrote, “If anyone in the Neo community (preferably developers) is interested in teaming up to make that happen, we encourage them to please reach out to the Flamingo team.” Anyone interested can connect with the Flamingo team via their Discord.
The full announcement from Flamingo is available at the link below: