The Ronin Bridge Is Open 🌱
We are thrilled to report that after three audits, the Ronin Bridge is officially open and ready for use. This means that users can now easily make deposits and withdrawals to and from the Ronin (RON) network.
All user funds are fully backed 1:1 by the new bridge. All users have been made whole.
We’ve successfully conducted an internal audit and two external audits (Verichains, Certik).
We are on track to release Land Staking this week.
The new bridge design includes a circuit-breaker system as a contingency plan which increases the security of the bridge by halting large suspicious withdrawals.
IMPORTANT: Do not send funds directly to the Ronin Bridge contract address.
The Ronin Bridge should only be accessed and used for deposits/withdrawals through the Ronin Bridge UI. Any funds sent directly to the Ronin Bridge’s contract addresses will be permanently lost.
Bridge refill and user funds details
173,600 ETH and 25.5M USDC were drained from the Ronin bridge on March 29, 2022. Sky Mavis and Axie Infinity committed to covering all users' funds.
56,000 wETH belonged to the Axie DAO treasury. The 56,000 of missing ETH from the Axie DAO treasury will remain undercollateralized as Sky Mavis works with law enforcement to recover the funds. If the funds are not fully recovered within two years, the Axie DAO will vote on next steps for the treasury.
The total liability left, minus the 56,000 belonging to the Axie DAO Treasury, stands at 117,600 ETH and 25.5M USDC.
Binance opened their bridge on April 2nd, enabling Ronin Network users to withdraw wETH, and from there, turn that into ETH. Since April 2nd, 46,000 wETH has been transferred to Binance from Ronin users. The 46,000 in ETH liquidity was provided from the Axie Infinity balance sheet and funds from the founding team, which enabled Ronin Network users to swap wETH to ETH. We’d like to extend our thanks to the Binance team for their flexibility when it comes to enabling Ronin Network users to deposit WETH and withdraw ETH.
This leaves 71,600 ETH and 25.5M in liabilities, which has been fully reimbursed by Sky Mavis. All wETH and USDC owned by Ronin Network users is now fully backed 1:1 by ETH and USDC on Ethereum, as promised. All users’ have been made whole.
Following the Ronin exploit in March, Sky Mavis conducted a full reassessment alongside independent auditors Certik and Verichains. These audits enabled us to identify and implement a number of opportunities for improvement. Below is an overview, for further technical details, please see Ronin Documentation, which includes the audit reports.
Introducing Governors through a Ronin Network upgrade
Going forward, the governance process will be conducted via a decentralized voting mechanism. The governors will be empowered to vote for changes such as: adding/removing validators, upgrade contracts, change thresholds, etc. The governance voting method is serial by design: only one governance vote can be held at a time, and that vote must be completed before moving to a new vote. One way to conceptualize the governor is as a cold wallet while the validator can be thought of as a hot wallet.
The Ronin Circuit-Breaker System
As a contingency plan, we are introducing the Ronin Circuit Breaker System, that introduces
withdrawal limits based on overall value. The withdrawal thresholds are:
Tier 1: 70% of validator signatures
Tier 2: (>=$1M) 90% of validator signatures
Tier 3: Tier 3 (>=$10M): 90% of validators signatures + human review. There will be a small fee for human interaction here (0,001% of the withdrawal amount)
Additionally, a Tier 3 withdrawal is subject to a 7-day review process.
Daily Withdrawal Limits
We have also updated the Bridge Smart Contract software so the validators can set a daily withdrawal limit from the Ronin Bridge. The initial daily withdrawal limit is set to $50M and the limit is reset every day at 00:00 utc.
If the $50M limit is hit early in the day it can be reset by an administrator. Tier3 withdrawals will not count towards this daily limit since it requires an administrative action.
You can read more about this system here.
Thank you for your patience as we worked vigilantly to bolster Ronin’s security. While we created Ronin to solve major issues we experienced while building Axie, its future success lies in the hands of the next generation of game developers who will leverage Ronin to create a broad-based gaming ecosystem that shares a massive user base, community-owned protocols, applications, and deep asset liquidity. We are more committed than ever to seeing Ronin become the industry standard for blockchain gaming and consumer applications.