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Post-mortem: ETH Router Exploits 1 & 2, and premature Return To Trading Incident

The ETH Router Exploit 1 & 2, Premature Trading, fixes and network response, as well as the 5 Pronged Response.


Exploit 1 — ETH

Impact — $8m

Premature Return to Trading

LP Withdrawals

Exploit 2— ERC-20s

Impact (~$8M USD)

  • 966.62 ALCX
  • 20,866,664.53 XRUNE
  • 1,672,794.010 USDC
  • 56,104 SUSHI
  • 6.91 YFI
  • 990,137.46 USDT

5-Pronged Recovery Plan

Problem 1: The ETH Bifrost Code was unaudited

Problem 2: There was no Official Bounty Program.

Problem 3: There is no ongoing “Red Team”

Problem 4: THORChain has no active security monitoring

  • Automatic Solvency Checker to halt as soon as a solvency is detected (pro-actively and re-actively)
  • Node Operator Timeout— any node can call to time-out the network for 25 mins if they suspect anything. This gives an ability for each of the 36 Node Operators to timeout an attack when they observe it.
  • Outbound Throttling — the txOut queue is throttled to artificially delay the settlement of transactions when there are sudden spikes.

Problem 5: There is no Protocol Insurance


  1. 1/3rd ($5.3m) will be directly contributed from the treasury assets
  2. 1/3rd ($5.3m) will be loaned from Iron Bank using RUNE collateral and paid off later
  3. 1/3rd ($5.3m) will be arbed into the network after it is brought back online for trading.

Return to Operational.

  1. Network Restart (send RUNE, Bond, receive Block Rewards) — early August
  2. BNB Chain online — August
  3. UTXO Chains online — September
  4. ETH Chain online — October





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The official team for THORChain — the decentralized liquidity network.