Most losses occurred in decentralized exchange liquidity pools. Bedrock clarified that underlying wrapped BTC tokens and standard Bitcoin held in reserves remained secure.
Launched in February 2023, Bedrock is operated by Singapore-based blockchain firm RockX. The protocol offers synthetic representations of major blockchain tokens, including uniBTC, uniETH, and uniIOTX. Bedrock aims to attract institutional investors with large capital to liquid staking. The platform prioritizes strict Know Your Customer and Anti-Money Laundering compliance.
Data from DefiLlama shows Bedrock as the eighth-largest liquid staking protocol with over $240 million in total value locked (TVL) on its platform.
Liquid restaking has grown rapidly in the crypto industry. The sector emerged following the launch of ETH restaking protocol Eigenlayer in April.
Liquid restaking protocols now boast over $11.4 billion in TVL. Eigenlayer itself has more than $12.1 billion in TVL on its mainnet.
The Bedrock incident highlights ongoing security challenges in the crypto industry. It underscores the need for robust protection measures in decentralized finance protocols.
Alexey Bondarev is the Head of Content at Yellow.com, having reported on crypto for the last 10 years. He specializes in in-depth Research and Learn pieces, with a focus on analytical reporting, industry context, and the bigger forces shaping crypto, from the AI era and security technologies to fintech innovation. He believes that everything digital will imminently overcome everything analogue and is working hard to make that come true.
