Bedrock partners with Chainlink to strengthen post-hack security

Following a $2 million exploit, liquidation restoration protocol Bedrock is integrating Chainlink's proof of reserve.

Such security measures will be necessary to maintain investor confidence during Bedrock's development.

Bedrock to narrow mining protocols with Chainlink integration

Bedrock, a liquid restoration company, suffered a major exploit on September 26.

The “impact” of this exploit was nearly $2 million, mostly in DEX LPs, and Bedrock is working to recover as much of the money as possible. A more comprehensive postmortem follows on the scene.

Read more: Ethereum Repository: What is it and how does it work?

After this exploit, the company made another statement. Going forward, Bedrock will integrate Chainlink Proof of Reserve (PoR) to increase overall security. Specifically, this “industry standard” reinforces their security protocol.

“Chainlink Proof of Reserve provides Bedrock with automated and verifiable on-chain checks to ensure proper reserves, preventing the kind of exploits we face today. These clear assurances that instant funds are fully secured and help protect against mishandling or mishandling, the announcement said.

Integrating the Chainlink Reserve is an important step to help strengthen our protocol and ensure maximum protection for users. Using it [it]All assets are fully insured and we can provide assurances that our manufacturing operations are safe, says Zuling, a core contributor at Bedrock.

Chainlink Security Portfolio

This particular incident echoes another that occurred four years ago. In the year In 2020, ValueDeFi achieved a $6 million flash loan exploit and subsequently integrated the ChainLink value chain protocol. Since then, the company has continued to make high-profile security deals, including a deal with 21.co earlier this week. This record helps explain the company's recent high price movement.

Read more: What is Chainlink (LINK)?

Bedrock was founded recently, in 2023, but its focus on attracting institutional investors has seen it grow significantly. According to data from Defillama, it is currently the eighth largest liquid storage protocol, with more than $240 million locked up in total value. Investors need security assurances for Bedrock to continue its rapid growth after such exploits.

“Backup verification…[provide] Users with full transparency around reserves. With the explosion of tokenized assets in our space, Chainlink's real-time, automated validations help prevent security exploits associated with overcrowding, thereby building trust and protecting against vulnerabilities,” said Johan Eide, Chief Business Officer of Chainlink.