Cake DeFi Suspends All dBTC Transactions

I received an email today that Cake Defi would be temporarily suspending all dBTC transactions.

Extract:

“All dBTC transactions have been temporarily disabled due to blockchain maintenance on DeFiChain. This includes all dBTC deposits/withdrawals, swaps, and Liquidity Mining. Transactions will recommence in due course once the maintenance work has been completed.”

“At present, we are unable to share when the service will be reinstated, and have no influence on this as Cake DeFi and DeFiChain are two separate entities.”

“All other services on Cake DeFi are working as normal."

This is related to the exploit in the ‘Atomic Swap’ feature on DeFiChain, discovered in early January 2022, which has resulted in a hack where dBTCs not backed by BTC collaterals were created.

The exploit is on DefiChain blockchain, which is an open-sourced community project, but impacts Cake DeFi which operates on the DeFiChain blockchain.

Resources:

• Post mortem of the issue on DeFiChain blog
• The community discussion on how to resolve the issue can be found on Spotify.
• The proposal to resolve the issue of unbacked dBTCs can be found here: DFIP 2201-A: Solving unbacked dBTC.