The Multichain bridging protocol LiFi announced a new aggregator solution to facilitate cross-chain DAOs’ restricted acceptance of votes confirmed by multiple bridges.
LiFi, in its Thursday, August 17 announcement, unveiled the multi-message aggregator targeting the decentralized autonomous organization (DAO) governance. The lead research executive Arjun Chand indicated that implementing the multi-bridge would suit lending applications, Web3 protocols, and decentralized exchanges.
The multi-bridge aggregator would help the DAOs in averting governance attacks often arising from the cross-chain bridges, as illustrated in the aggregator’s documentation. The Thursday announcement comes months after the heated debate about bridge vulnerabilities.
Single Bridges Vulnerable to Guarantee Secure Governance
The vigorous debates dominated the Uniswap forums held in January and February. The conversation concluded that neither single bridge harbors all security features that would guarantee secure governance.
Crypto exchange Uniswap leverages DAO governance identified as UniswapDAO. The governance UniswapDAO initiated forums to examine the viability of deploying a second version of Uniswap running on the BNB Smart Chain (BSC).
The plans triggered inquiry on Uniswap’s governance on multiple chains considering that all votes favored the Ethereum network. The January 24 vote supported deploying the second Uniswap version to the BSC. The version would utilize the bridging protocol Celer to convey messages from BSC to Ethereum.
Celer’s Security Infrastructure Capability Questioned on Averting Cross-chain Governance Attacks
While the proposal passed the vote, it attracted controversy concerning the selection of Celer Bridge to send messages. Several DAO participants questioned Celer’s security infrastructure capability to avert cross-chain governance attacks. Instead, the critics questioned why not leverage LayerZero, DeBridge, and Wormhole.
The split forced a second DAO vote on January 31 on the bridge to use for governance. Wormhole would emerge victorious as the official governance bridge. The win for Wormhole made the referendum contentious since only 62% of Uniswap tokens cast yes votes. Contrastingly, several UniswapDAO proposals attained near-unanimous votes split for and against.
UniswapDAO Propose Viability of Multiple Bridges
Many participants in the debate leading to the second vote indicated that Uniswap should consider utilizing multiple bridges. Embracing a multiplicity of bridges would avert dependency on a single bridge. Also, in the event of hacking, other ridges would deny the malicious message to prevent the attack.
Despite the solid proposal by the participants, no multi-bridge solution existed at the time. Consequently, the participants agreed to use Wormhole till the creation of a multi-bridge solution.
LiFi Bridge Aggregator to Accommodate Cross-chain Messaging Requirements
The August 18 announcement by LiFi indicated that the unveiling of the bridge aggregator would offer a future-proof solution that would accommodate diverse cross-chain messaging requirements. Its unveiling would prevent the protocols from relying on a single bridge to convey governance messages.
A review of the aggregator’s documents indicates that protocols can utilize LiFi, obligating that verifying two of the three bridges are valid. In particular, if a single bridge indicates a DAO tokeholder voted yes would be subordinate to the other two bridges indicating a no vote.
The multi-bridge aggregator could accommodate different configurations obligating three from five bridges or other customized ratios desired by the DAO.
DAO Governance Embrace Multi-Bridge Aggregators
The move by LiFi aligns with the current trend of creating multi-bridge aggregators in DAO governance. Gnosis launched the Hashi multi-bridge protocol in March. However, the UniswapDAO committee ruled out Hashi in June, labeling it lacking production readiness.
Also, the committee highlighted pending audits and the absence of bug bounty. The existence of several weaknesses convinced the committee to label Hashi unsuitable to accommodate DAO governance.
Chand admitted that the LiFi aggregator is still missing the audit. Nonetheless, he cited the announcement that LiFi would soon expand the testing scale besides its submission to Trail of Bits for auditing.
Hackers timely give the move to secure governance and verification process the previous exploit of bridges.
Editorial credit: rafapress / Shutterstock.com
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