In a significant XRP information, Hex Belief, the issuer of the wrapped XRP (wXRP) token, has confirmed that the wrapped token has zero publicity to the $292 million Kelp DAO exploit that occurred over the weekend. This follows an earlier warning that wXRP on Solana may face an analogous threat as DeFi considerations mount.
XRP Information Right this moment: Hex Belief Confirms wXRP Is Protected
In an X publish, Hex Belief mentioned that wXRP has zero publicity to the Kelp DAO exploit and that person funds had been by no means in danger. This pertains to the wXRP on the Ethereum community, because the hacker drained rsETH by means of Kelp DAO’s LayerZero-powered cross-chain bridge.
As CoinGape reported, LayerZero blamed Kelp DAO’s single-DVN configuration for the rsETH exploit. It famous that Kelp DAO selected to make use of a single decentralized verifier community (DVN) configuration, which is why the exploit succeeded.
In the meantime, Hex Belief famous that two of their 4 multi-DVN setups imply no single verifier can approve a transaction on their very own. Moreover, the agency assured that none of their DVNs had been compromised and that they don’t use the exploited DVN within the Kelp DAO hack for wXRP.
Hex Belief additionally revealed that it holds the underlying XRP in its regulated custody and never on the bridge. Nonetheless, they paused the bridge as a precaution and at the moment are reviewing the configuration following the hack to the liquid staking protocol Kelp DAO.
The agency added that each wXRP stays 1:1 backed. It’s value noting that there are presently 50 million wXRP tokens in circulation on the Ethereum community. In the meantime, Hex Belief solely lately expanded the wrapped token to the Solana community.
wXRP Solana Already Shut To The One Million Mark
In accordance with knowledge from Hex Belief, the circulating provide of wXRP on Solana has almost reached the 1 million mark in lower than every week because the token’s launch. The token notably launched on a number of Solana-powered purposes, together with Phantom, Jupiter Alternate, Meteora, and Byreal.
In the meantime, following the Kelp DAO exploit, XRP Ledger validator Vet warned of the danger of holding these wrapped tokens on networks like Solana or Ethereum fairly than merely holding the native XRP. This got here as he famous that issued tokens, corresponding to wXRP, have actual counterparty threat.
The Kelp DAO hack has as soon as once more raised considerations about DeFi safety, particularly on condition that it occurred lower than a month after the Drift exploit. Notably, former Ripple CTO David Schwartz expressed considerations about integrating DeFi bridge infrastructure to assist RLUSD following the Kelp DAO incident.
