- This issue could have put users’ funds at significant risk
- OP token fell 4.57% in 24 hours after disclosure.
L2 is in the news today after a critical security vulnerability in Optimism was discovered. [OP] The stack is the software that underpins the top layer 2 (L2) chains such as OP Mainnet and Base. Interestingly, this issue was brought to light by Offchain Labs, the original developer of another major Ethereum scaling solution – Arbitrum. [ARB].
Optimism avoids big risks
in blog post Offchain Labs shared on April 26th highlighting security flaws detected in the recently released OP Stack fraud proof in a test environment. Evidence related to these loopholes was shared with Optimism’s development team, OP Labs, which later acknowledged them.
This flaw reportedly allowed attackers to tamper with the security of the chain by allowing the protocol to accept malformed requests or reject legitimate ones. Had this version reached mainnet, these issues could have put users’ funds at “extremely high risk.”
According to Offchain Labs, as of this writing, OP Labs has fixed these issues and the testnet has also been updated.
For those not familiar with the project, OP Labs has been testing fault proofing, a key security feature at the core of Optimistic Rollup technology, for several months now. AMBCrypto has discovered using DeFiLlama data that L2 chains built on the OP stack are some of the largest in the ecosystem, with Base, Blast, and OP Mainnet leading to total rollup deposits. It was found that this accounted for over 48% of the total.
Source: Defilama
Realistic or not, OP’s market capitalization in BTC is:
FUD damages Optimism’s OP token
Although the issue remains resolved, this disclosure caused significant FUD among OP token holders. According to CoinMarketCap, the cryptocurrency has fallen by 4.57% in the past 24 hours.
Market sentiment towards this coin also remained negative, as confirmed by AMBCrypto using Santiment data. Additionally, open interest (OI) in the futures market fell, suggesting less interest from speculative traders.
Source: Santiment
