Azoundria at 21:59, 6 November 2024

2024-11-06T21:59:05Z

← Older revision		Revision as of 15:59, 6 November 2024
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	{{Unattributed Sources}}		{{Unattributed Sources}}

	[[File:Bedrocktechnology.jpg\|thumb\|Bedrock Technology Logo/Homepage]]<ref name="rektnews-16053" /><ref name="slowmisthackedarchive-16054" /><ref name="dedaubtwitter-16055" /><ref name="bedrockdefitwitter-16056" /><ref name="bedrockdefitwitter-16057" /><ref name="mirror-16058" /><ref name="bedrocktechnology-16059" /><ref name="bedrocktechnologydocs-16060" /><ref name="bedrocktechnologydocs-16061" /><ref name="bedrockdefitwitter-16062" /><ref name="mirror-16063" /><ref name="bedrockdefitwitter-16064" />		[[File:Bedrocktechnology.jpg\|thumb\|Bedrock Technology Logo/Homepage]]<ref name="rektnews-16053" /><ref name="slowmisthackedarchive-16054" /><ref name="dedaubtwitter-16055" /><ref name="bedrockdefitwitter-16056" /><ref name="bedrockdefitwitter-16057" /><ref name="mirror-16058" /><ref name="bedrocktechnology-16059" /><ref name="bedrocktechnologydocs-16060" /><ref name="bedrocktechnologydocs-16061" /><ref name="bedrockdefitwitter-16062" /><ref name="mirror-16063" /><ref name="bedrockdefitwitter-16064" /><ref name="unnamed-16589" />

	== About Bedrock Technology ==		== About Bedrock Technology ==
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	<ref name="mirror-16063">[https://mirror.xyz/0xF3c0C25090ae1458FC152947Aab57253cB8E0F0F/HoKWV3xC-FcojSjWBHrwwUng7WpH3lpcGOZjnG-qeN8 Bedrock Is Integrating Chainlink Proof of Reserve To Natively Se… — Bedrock] (Accessed Oct 1, 2024)</ref>		<ref name="mirror-16063">[https://mirror.xyz/0xF3c0C25090ae1458FC152947Aab57253cB8E0F0F/HoKWV3xC-FcojSjWBHrwwUng7WpH3lpcGOZjnG-qeN8 Bedrock Is Integrating Chainlink Proof of Reserve To Natively Se… — Bedrock] (Accessed Oct 1, 2024)</ref>

	<ref name="bedrockdefitwitter-16064">[https://twitter.com/Bedrock_DeFi/status/1841045692539945181 @Bedrock_DeFi Twitter] (Accessed Oct 1, 2024)</ref></references>		<ref name="bedrockdefitwitter-16064">[https://twitter.com/Bedrock_DeFi/status/1841045692539945181 @Bedrock_DeFi Twitter] (Accessed Oct 1, 2024)</ref>

			<ref name="unnamed-16589">[https://x.com/CyversAlerts/status/1839384159900651545 x.com] (Accessed Nov 4, 2024)</ref></references>

Azoundria: Created page with "{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/bedrocksigmasupplierunibtcforgingexploit.php}} {{Unattributed Sources}} Bedrock Technology Logo/Homepage..."

2024-10-01T19:13:21Z

Created page with "{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/bedrocksigmasupplierunibtcforgingexploit.php}} {{Unattributed Sources}} thumb|Bedrock Technology Logo/Homepage<ref name="rektnews-16053" /><ref name="slowmisthackedarchive-16054" /><ref name="dedaubtwitter-16055" /><ref name="bedrockdefitwitter-16056" /><ref name="bedrockdefitwitter-16057" /><ref name="mirror-16058" /><ref name="bedrocktechnology-16059" />..."

New page

{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/bedrocksigmasupplierunibtcforgingexploit.php}}
{{Unattributed Sources}}

[[File:Bedrocktechnology.jpg|thumb|Bedrock Technology Logo/Homepage]]<ref name="rektnews-16053" /><ref name="slowmisthackedarchive-16054" /><ref name="dedaubtwitter-16055" /><ref name="bedrockdefitwitter-16056" /><ref name="bedrockdefitwitter-16057" /><ref name="mirror-16058" /><ref name="bedrocktechnology-16059" /><ref name="bedrocktechnologydocs-16060" /><ref name="bedrocktechnologydocs-16061" /><ref name="bedrockdefitwitter-16062" /><ref name="mirror-16063" /><ref name="bedrockdefitwitter-16064" />

== About Bedrock Technology ==
"The world's first multi-asset liquid restaking protocol."

"Bedrock is a multiple asset liquid restaking protocol, that backed by non-custodial solution designed in partnership with RockX, a longstanding blockchain infrastructure company with strong roots in crypto staking."

"uniBTC [is a] brand new restaking protocol that accept wrapped BTC tokens partnership with the BTC staking protocol Babylon chain, the first supported wrapped BTC is wBTC token on Ethereum blockchain, so all the wBTC token holders will enjoy both yield on staking BTC tokens plus the security of Ethereum network."

"The uniBTC contracts are designed to enable users to convert their BTC assets into an equivalent amount of uniBTC tokens. By design, minting uniBTC using native tokens on non-native BTC chains should NOT be allowed, as the native token no longer represents native BTC."

== The Reality ==
A "vulnerable contract was deployed across eight different chains: Ethereum, BNBChain, Arbitrum, Optimism, Mantle, Mode, BOB, and ZetaChain."

== What Happened ==
"On Sep-26-2024 06:28:23 PM UTC, a vulnerability in the uniBTC smart contract was exploited, allowing the exploiter to mint 30.8 uniBTC and swap them for wBTC in Uniswap pools."
{| class="wikitable"
|+Key Event Timeline - Bedrock SigmaSupplier uniBTC Forging Exploit
!Date
!Event
!Description
|-
|September 25th, 2024 12:17:00 AM MDT
|Vulnerable Code Deployed
|Vulnerable code is deployed to the Bedrock smart contract.
|-
|September 26th, 2024 12:28:23 PM MDT
|Time Of Exploit Transaction
|The exact time of the exploit on the blockchain.
|-
|September 26th, 2024 5:15:00 PM MDT
|Debaub Report On Exploit
|Debaub announces that their team reported a critical issue on the Bedrock protocol, which was ultimately exploited some hours later. "Vulnerability was in minting uniBTC, a ~$75m asset (on Ethereum alone, plus much more on 8+ other chains)."
|-
|September 26th, 2024 7:39:00 PM MDT
|Bedrock Is Aware Now
|Bedrock sends out a public notice that they are "aware of a security exploit involving uniBTC"
|-
|September 27th, 2024 7:16:51 AM MDT
|Chainlink Proof Of Reserve
|The Bedrock protocol announces the implementation of a Proof of Reserves protocol provided by Chainlink. "As the industry standard, Proof of Reserve will secure our minting function, providing users with cryptographic guarantees around asset reserves."
|-
|September 27th, 2024 10:20:16 AM MDT
|Bedrock Post-mortem Published
|
|-
|September 30th, 2024 12:24:00 PM MDT
|Rekt Investigation
|Tekt News starts their investigation of the incident.
|-
|October 1st, 2024 3:18:00 AM MDT
|Bitcoin Restaking Live
|The Bedrock team announces that they are "pleased to announce all uniBTC contracts have been resumed, and you can begin staking bitcoin on @babylonlabs_io with Bedrock NOW".
|}

== Technical Details ==
"The uniBTC contracts are designed to enable users to convert their BTC assets into an equivalent amount of uniBTC tokens. By design, minting uniBTC using native tokens on non-native BTC chains should NOT be allowed, as the native token no longer represents native BTC."

"The handling of native tokens differs from wrapped tokens because msg.value is already transferred into the contract. As a result, the check on Line 170 does not need to account for the _amount transferred, unlike the check on Line 184. Therefore, if the cap is set to 0, the mint function will revert for native tokens.

The vulnerability lies within the SigmaSupplier (Sigma) contract.

First, tokens must be registered to be included in the current total balance of native or wrapped BTC tokens. Second, if a token is not registered, the contract returns 0, meaning it cannot be found in the tokenHolders variable. The following figure shows that only FBTC, WBTC, and cbBTC have been registered, while NATIVE_BTC has NOT. On one hand, NATIVE_BTC should NOT be registered in this contract, as it is not intended to be supported. On the other hand, failing to register NATIVE_BTC results in the totalSupply always being ZERO, which contradicts the caps restriction mechanism.

Since the total supply at that time was ZERO instead of reflecting the msg.value received by the contract, the check the Vault contract passed, allowing the minting of uniBTC using native tokens on non-native BTC chains.

Therefore, on a non-native BTC chain, replacing the balance with the total supply is acceptable for wrapped BTC tokens but problematic for native tokens."

== Total Amount Lost ==
The total amount lost has been estimated at $2,000,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
"In response, we paused the vulnerable contract and implemented a fix to mitigate the vulnerability, which was later confirmed to have affected approximately $2 million in liquidity, primarily within the Uniswap pool."

"The multi-chain liquidity re-staking protocol Bedrock announced on social media that the team is aware of a security vulnerability involving uniBTC, with the total estimated loss from the theft around $2 million. According to the SlowMist security team’s analysis, the attack was caused by Bedrock mistakenly supporting the minting of uniBTC at a 1:1 exchange rate with the native token."

"We want to inform you that the Bedrock team is aware of a security exploit involving uniBTC. The issue has been handled and funds are SAFU.

We want to reassure everyone that the underlying wrapped BTCs and BTCs in reserves are secure. The total estimated impact of the exploit is approximately $2 million (mostly in DEX LPs). The root cause has been identified and we are taking steps to address it. A comprehensive reimbursement plan is being finalized and will be shared shortly together with a post-mortem report.

Bedrock is collaborating closely with audit teams and white hats to recover the lost funds. A Proof of Reserves will be shared once it is available to ensure transparency.

At this time, no extra actions are required from our community. Rest assured that all uniBTC held by users are safe."

== Ultimate Outcome ==
"Bedrock is integrating @chainlink Proof of Reserve to enhance security and help prevent future exploits.

As the industry standard, Proof of Reserve will secure our minting function, providing users with cryptographic guarantees around asset reserves."

== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?
== Individual Prevention Policies ==
{{Prevention:Individuals:Placeholder}}

{{Prevention:Individuals:End}}

== Platform Prevention Policies ==
{{Prevention:Platforms:Placeholder}}

{{Prevention:Platforms:End}}

== Regulatory Prevention Policies ==
{{Prevention:Regulators:Placeholder}}

{{Prevention:Regulators:End}}

== References ==
<references><ref name="rektnews-16053">[https://rekt.news/bedrock-rekt/ Rekt - Bedrock - Rekt] (Accessed Oct 1, 2024)</ref>

<ref name="slowmisthackedarchive-16054">[https://web.archive.org/web/20240930035042/https://hacked.slowmist.io/ SlowMist Hacked - SlowMist Zone] (Accessed Oct 1, 2024)</ref>

<ref name="dedaubtwitter-16055">[https://twitter.com/dedaub/status/1839443676986278053 @dedaub Twitter] (Accessed Oct 1, 2024)</ref>

<ref name="bedrockdefitwitter-16056">[https://twitter.com/Bedrock_DeFi/status/1839479965685100780 @Bedrock_DeFi Twitter] (Accessed Oct 1, 2024)</ref>

<ref name="bedrockdefitwitter-16057">[https://twitter.com/Bedrock_DeFi/status/1841045021921067375 @Bedrock_DeFi Twitter] (Accessed Oct 1, 2024)</ref>

<ref name="mirror-16058">[https://mirror.xyz/0xF3c0C25090ae1458FC152947Aab57253cB8E0F0F/7dqKrAfS20rr3m_zuCwN80lChYTB0Cniie5IrdiC9ZQ Post Mortem Report — Bedrock] (Accessed Oct 1, 2024)</ref>

<ref name="bedrocktechnology-16059">[https://www.bedrock.technology/ Bedrock: World's first multi-asset liquid restaking protocol] (Accessed Oct 1, 2024)</ref>

<ref name="bedrocktechnologydocs-16060">[https://docs.bedrock.technology/ Introducing Bedrock | Bedrock] (Accessed Oct 1, 2024)</ref>

<ref name="bedrocktechnologydocs-16061">[https://docs.bedrock.technology/security/audit-reports Audit reports | Bedrock] (Accessed Oct 1, 2024)</ref>

<ref name="bedrockdefitwitter-16062">[https://twitter.com/Bedrock_DeFi/status/1839661021218361571 @Bedrock_DeFi Twitter] (Accessed Oct 1, 2024)</ref>

<ref name="mirror-16063">[https://mirror.xyz/0xF3c0C25090ae1458FC152947Aab57253cB8E0F0F/HoKWV3xC-FcojSjWBHrwwUng7WpH3lpcGOZjnG-qeN8 Bedrock Is Integrating Chainlink Proof of Reserve To Natively Se… — Bedrock] (Accessed Oct 1, 2024)</ref>

<ref name="bedrockdefitwitter-16064">[https://twitter.com/Bedrock_DeFi/status/1841045692539945181 @Bedrock_DeFi Twitter] (Accessed Oct 1, 2024)</ref></references>

Bedrock SigmaSupplier uniBTC Forging Exploit - Revision history

Azoundria at 21:59, 6 November 2024

Azoundria: Created page with "{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/bedrocksigmasupplierunibtcforgingexploit.php}} {{Unattributed Sources}} Bedrock Technology Logo/Homepage..."