An official announcement by the head of research at LiFi, Arjun Chand, revealed that the multichain bridging protocol launched a multi-message aggregator to support the decentralized autonomous organization’s (DAO) performance. The new aggregator has defensive features to prevent governance attacks from the cross-chain bridge exploit.
The researcher anticipates that if the newly launched aggregator is successfully implemented, the lending protocols, exchanges, and Web3 platforms will be free from attacks.
LiFi Seeks to Control Cross-Chain Attacks
In a recent debate, the developers from Uniswap, a decentralized crypto exchange, observed that most bridges lacked critical security tools to ensure that the DAO governance was safe. During the January and February debates hosted by the Uniswap team, the developers examined whether the cross-chain bridges were secure to support the governance performance.
Reportedly, the UniswapDAO debates aimed at introducing a copy of Uniswap to the BNB smart chain. This proposal stirred heated exchanges among the developers who examined the possibility of whether the Uniswap protocol could be governed on multiple chains.
Afterwards, the DAO agreed to introduce a second copy of Uniswap to the BSC. The voter advocated using Celer to share messaging to the Ethereum network from the BSC.
Even though the DAO community agreed to implement the second Uniswap copy using the Celer bridging protocol, the developers experienced a security weakness. In late February, the DAO community expressed concern about the security of the Celer protocol. They argued that the Celer protocol was insecure to prevent governance attacks on the cross-chain bridges.
In the latter, some DAO members advised the Uniswap developers to replace Celer with Wormhole or LayerZero. Before this, the DAO community had engaged in a second voting to determine the suitable bridge that would improve governance security.
The outcome of the January 31 voting revealed that most of the DAO community preferred Wormhole to Celer. Among the votes cast, 62% of the Uniswap holders voted yes, while 38% were against the proposal.
LiFi Launches New Aggregator Bridge
From the completed debates, the DAO community recommended that Uniswap implement multiple bridges to improve governance security. The DAO argued that if the hackers exploited one bridge, the other would react to the command and prevent the malicious attack.
The DAO recommended that the Uniswap team utilize the Wormhole protocol to create a multibridge solution since none existed. According to the August 18 announcement, the LiFi research stated that the new bridge aggregator has an innovative future-proof solution that meets the ever-changing messaging needs.
Also, the future-proof model will limit the overreliance on a single bridge for governance messages. Chand argued that the LiFi aggregator would require the votes to be validated on the second bridge.
The analyst explained that the DAO results on the second bridge would be considered to be true. The report illustrated that the new bridge aggregator could be adjusted to use three instead of two bridges.
Surprisingly LiFi’s latest development mirror Gnosis multibridge aggregator that aimed at improving the performance of DAO governance. In March, the Gnosis team created a unique multibridge protocol dubbed Hashi.
Later the UniswapDAO committee observed that the Hashi protocol was not ready for production after it could not complete audits and lacked a bug bounty. In June, the UniswapDAO team considered Hashi unsuitable to support DAO governance.
The unsuitability of the hashi compelled the LiFi team to conduct a trial on the new aggregator to ensure it support the DAO governance. Chand confirmed that the LiFi aggregator would undergo an audit and further testing to ensure it improves the efficiency of the DAO governance.