BASE launches new monitoring system after series of hacks, rug pull scams
- BASE chain has launched an open source monitoring system to enhance security of all OP Stack and EVM-compatible chains.
- Rug pulls and hacks on the BASE chain have drained millions in user funds since Coinbase Layer 2’s launch.
- The monitoring tool will assess, issue an alert and help safeguard the BASE ecosystem.
BASE, Coinbase’s Layer 2 network chain, has launched an open source monitoring tool to help support the security of OP Stack and EVM-compatible chains. Since BASE’s mainnet launch on August 9, there have been security incidents where users lost over $5 million in funds to rug pulls.
Monitoring, assessment and an alert-based system could help tackle such incidents in the future. BASE has, therefore, opened its Pessimism for the entire Layer 2 ecosystem.
Also read: Whales drop stablecoins like hotcakes, analysts wait for turnaround in Bitcoin demand
BASE rolls out Pessimism to fight protocol threats
Quick detection and response to protocol threats could help users save millions of dollars in funds lost to rug pulls and scams on BASE. The Coinbase Layer 2 chain identified the need for a monitoring tool and released it as open-source for all compatible chains in the ecosystem.
Introducing Pessimism, an open source monitoring system designed to enhance security of Base (as well as the broader OP Stack and Ethereal ecosystem) by quickly detecting and responding to a myriad of protocol threatshttps://t.co/erocaQOkbz
— Base ️ (@BuildOnBase) September 19, 2023
To recount some of the security incidents on BASE, users lost $6.4 million to an attack on Magnet Finance. It was orchestrated via price oracle manipulation, and security analysts traced it back to the Kokomo Finance hack on the Optimism chain, in which users lost $4 million. The bad actors were linked to several projects in the OP ecosystem.
Solidus Labs, a crypto research firm, has identified over 500 scam tokens on BASE in its recent report. Find out more about it here.
SwirlLend and BALD are two other projects where users lost over $5 million in funds each.
Similar security incidents are likely to be tackled by the monitoring tool. Pessimism has three subsystems that help transform real-time data, actively assess risk and issue alerts downstream.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
