Bedrock integrates Chainlink to enhance security after $2M exploit

Following a $2 million exploit, Bedrock, a liquid restaking protocol, has announced its integration of Chainlink's (CRYPTO:LINK) Proof of Reserve (PoR) system to strengthen its security.

This move aims to restore investor confidence and safeguard the protocol from future incidents like overminting.

The exploit, which occurred on September 26, primarily affected Bedrock's uniBTC, although the wrapped and reserve BTC remained secure.

The financial impact of the exploit was around $2 million, mostly affecting decentralised exchange liquidity pools.

Bedrock is working to recover the lost funds and will provide a detailed post-mortem on the incident.

To prevent similar events in the future, Bedrock has decided to integrate Chainlink’s Proof of Reserve system.

This integration will introduce automated, real-time, and verifiable on-chain checks to ensure the accurate backing of Bedrock’s reserves.

According to Bedrock’s announcement, the system will help prevent overminting and ensure that funds remain fully collateralised.

“Chainlink Proof of Reserve will provide Bedrock with automated and verifiable on-chain checks to help ensure the correct backing of reserves,” the announcement stated, emphasising that this transparency will protect against manipulation and mishandling.

Bedrock’s core contributor, Zhuling, highlighted that the integration will provide a reliable and transparent minting process.

Chainlink’s security tools have a track record of success, with similar integrations following other major incidents.

Bedrock, founded in 2023, has quickly grown to become the eighth-largest liquid staking protocol, with over $240 million in total value locked, according to DefiLlama.

As it seeks to continue attracting institutional investors, the protocol’s integration of Chainlink PoR will be crucial in maintaining trust and securing user funds.

Chainlink’s Chief Business Officer, Johann Eid, stressed that Proof of Reserve will provide full transparency around Bedrock's reserves, helping to prevent vulnerabilities and security exploits in the rapidly growing space of tokenized assets.

At the time of writing, the Chainlink price was $12.34.