The team behind Ronin Bridge, the ETH-linked sidechain that hosts the play-to-earn (P2E) game Axie Infinity, announced on Tuesday that the bridge has reopened.
This comes after a shutdown of more than three months and three audits – since the hack in March that stole more than $600 million in funds from the sidechain.
“We are excited to report that, after three audits, the Ronin Bridge is officially open and ready for use. That is, users can now easily make deposits and withdrawals to and from the Ronin (RON) network,” the team said.
Ronin from Axie Infinity is open
According to a statement released Tuesday, all user-owned wETH and USDC are fully supported at 1:1 by the new bridge.
It is worth noting that funds should not be sent directly to the Ronin Bridge contract address. Instead, users must access the bridge through the interface Ronin Username.
Also in its statement, the team informed that it had successfully carried out an internal audit and two external audits with the companies Verichains and Certik.
In addition, he highlighted that Ronin will launch the Land Staking service for users later this week.
The team further said that the new bridge design includes a “circuit breaker system” as a contingency plan. This mechanism increases the security of the bridge by preventing large suspicious withdrawals.
Refund to Ronin Users
As the team reported, on March 29 this year, hackers drained 173,600 ETH and 25.5 million USDC from the Ronin bridge. After what may have been the biggest hack in cryptocurrency history, Sky Mavis and Axie Infinity have pledged to cover the funds of all users.
According to the statement, of this total, 56,000 wETH belonged to the Axie DAO treasury, a value that will remain under-guaranteed. That’s because Sky Mavis said it was working with law enforcement to recover the funds.
However, if the funds are not recovered within two years, Axie DAO will vote on the next steps for the treasury.
The total remaining liabilities minus the 56,000 ETH from Treasury Axie DAO is 117,600 ETH and 25.5 million USDC.
The team also pointed out that cryptocurrency exchange Binance opened its bridge on April 2. This allowed Ronin users to withdraw wETH and turn it into ETH.
Since then, 46,000 wETH has been transferred to Binance from Ronin users. Then Binance transferred the 46,000 wETH to Axie Infinity on the Ronin Network and this amount was withdrawn from circulation.
As a result, only 71,600 ETH remained and 25.5 million in liabilities. This amount, according to the statement, was fully refunded by Sky Mavis.
Network governance
Finally, the statement explains how Ronin’s governance process will work. First, this process will work through a decentralized voting mechanism.
That is, governors will have the power to vote on changes, such as adding and/or removing validators, updating contracts, changing limits, etc.
In addition, as a contingency plan, the team introduced the “Ronin Circuit Breaker System”. This system sets withdrawal limits for users based on the total amount.
Withdrawal limits are separated into three levels:
- 1: 70% of validator signatures;
- 2: (from US$1 million) 90% of validator signatures;
- 3: (from $10 million): 90% of validator signatures plus human review.
In the case of level 3, there will still be a fee for human interaction of 0.001% of the withdrawal amount. Additionally, this withdrawal is subject to a 7-day review process.
The team also reported that it has updated the Bridge Smart Contract software so that validators set a daily withdrawal limit.
At the beginning, the daily withdrawal limit is $50 million. But governance will reset the limit every day at 00:00 utc.
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