Dear Users & Community,
We are writing to address a recent incident that has affected the OATH ecosystem and to share crucial information regarding the next steps we are taking to protect our community.
What HappenedOn July 6th, 2023, the Multichain Bridge unexpectedly lost access to $125 million of assets, leading to the bridge being frozen. The majority of the drained tokens consisted of USDC, wBTC, and wETH. In light of this situation, we strongly advise all users to refrain from using Multichain and revoke any approvals related to the bridge immediately. It is important to note that the bridge is currently frozen, and there is no confirmed timeline for its resumption. For instructions on revoking approvals, please refer to the guidelines provided at the end of this announcement.
Moving OATH Across ChainsAt present, there is no direct way to bridge OATH across chains due to Multichain no longer functioning. We are actively working on implementing a new bridge solution and will announce it as soon as it is ready.
The Fate of Old OATHOn all networks except Fantom, the old OATH token will be deprecated but remain redeemable for a new OATH token at a 1:1 ratio with the exception of Optimism. This redemption process will involve a one-way wrapping, effectively burning the old OATH token upon exchange. The wrapping mechanism will be permissionless until a large majority of users have migrated, after which future requests will be handled on a case-by-case basis. This is to ensure any re-activation of the Multichain protocol won’t have any effect on the new OATH token.
Treatment of bOATHDue to the immutability of Ethos Reserve, bOATH will be handled differently in the token migration process. Until the launch of Ethos Reserve v2 (date to be determined), only Optimism will support unwrapping the new OATH for the old OATH at a 1:1 ratio. This will preserve users’ ability to bridge to Optimism using the new OATH and swap to the old OATH to participate in the bOATH pool.
LP Token MigrationTo ensure a smooth transition, we recommend all users break apart their LP (liquidity provider) tokens and migrate to the new OATH token and new LP pools as soon as possible.
The Migration Plan
To mitigate the risks stemming from its exposure to Multichain, a token migration is necessary. A new OATH token will be deployed on all chains except Fantom as the original OATH token remains unaffected. The new OATH will be required to bridge across all chains.
The old OATH token logo will be updated on collaborating decentralized exchanges to help make it more obvious that it is dated. No more incentives will be sent to old OATH pools, instead new liquidity options will become available for new OATH moving forward.
Since Fantom OATH is unaffected, LGE vests will function as expected. You’ll be able to simply access the new bridges once they are completed.
How to Revoke Old OATH Token Approvals to Multichain
To revoke approvals you’ve made using your address, follow these steps:
- Visit the block scanner for the network you wish to revoke approvals on. For example, if you’ve used Multichain on Optimism, visit optimistic.etherscan.io.
- Under the search bar in the top right corner, click More located next to the sign-in link.
- In the opened box, find the link to Token Approvals. Click on it.
- In the search bar with the prompt to Search by Address, paste your address to review all approvals associated with it.
- To revoke those approvals, you will need to connect your wallet to the block scanner via the button that says Connect to Web3 located directly under the search bar.
- Once connected, you will be able to revoke the approvals associated with Multichain.
We understand the concern and uncertainty this incident has caused and assure you that our team is working tirelessly to address the situation and safeguard the OATH ecosystem. The token migration and other measures are essential steps we are taking to protect the interests of our community.
We will continue to keep you informed of any developments and progress made during this process. Please stay tuned for further announcements and updates.
If you have any questions or require assistance, please do not hesitate to reach out to our team through the OATH Discord.
Thank you for your understanding and unwavering support.