Despite attributing the bug to its service providers, Degen Chain acknowledged its own responsibility for not proactively changing providers or requesting a fix.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
As per the latest report, a user of Layer 3 blockchain Degen Chain has lost a massive 90% of his funds during a bridge transfer to the Ethereum Layer 2 platform Base, due to an internal bug.
On Tuesday, July 16, Degen chain user Temper.degen lost a total of 785,000 DEGEN tokens worth almost $5,000 during the bridge transfer. This lost token represents 90% of the total DEGEN tokens the user transferred.
After some preliminary investigation, Degen blamed an internal bug for the user’s misfortune. The protocol announced its intention to compensate all users who incurred losses due to the bug, In a post on the X platform, Degen noted:
“Bugs like this should never happen, especially when user funds are involved. If you’ve faced a similar problem, we’ll create a form to ensure everyone gets refunded.”
Furthermore, the Degen Chain lashed out at its service providers for their “terrible service” which resulted in outages and loss of user funds.
1/3 One of our users lost almost 90% of their funds during a bridge transfer from Degen Chain to Base. Bugs like this should never happen, especially when user funds are involved. If you’ve faced a similar problem, we’ll create a form to ensure everyone gets refunded. pic.twitter.com/dcW52FqJS3
— Degen 🎩 (@degentokenbase) July 16, 2024
Despite attributing the bug to its service providers, Degen Chain acknowledged its own responsibility for not proactively changing providers or requesting a fix. They said:
“We’re doing a major shake-up in the coming weeks to ensure we get the best service possible. This won’t be a quick fix, but we will turn things around. Apologies to everyone affected.”
Even though Degen Chain admitted its fault along with offering a solution, community members shared displeasure on how easily users can lose their funds while using bridge transfers. Several critics believe that Layer 3 platforms like degen chain aren’t ready for mainstream acceptance. These community members also complained of facing constant multi-day outages.
Recently, Optimism, a provider of Ethereum Layer 2 scaling solutions, revealed its intention to integrate layer-3 applications onto the OP Stack. The OP Stack, an open standard codebase driving development on Superchain, is not restricted to L2 chain deployers and app developers, as highlighted in the official announcement.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
