LayerZero Says It Is Investigating rsETH Incident With Security Alliance

Sky has paused USDS Omnichain Fungible Token bridge transfers while assessing fallout from the rsETH security incident, while stating its protocol and the USDS contract were unaffected and USDS remains fully collateralized.

USDS
SKY
RSETH

Summary

Sky paused transfers on its USDS Omnichain Fungible Token bridge as it evaluates the impact of the rsETH security incident. The company said its protocol and the USDS contract were not affected by the event, and added that USDS remains fully collateralized and verifiable on-chain. This update adds a direct operational response from a separate protocol to the broader rsETH incident, which LayerZero previously said it was investigating with KelpDAO and Security Alliance.

Terms & Concepts
  • Omnichain Fungible Token: A token standard designed to let fungible assets move across multiple blockchains using interoperable bridging infrastructure.
  • USDS: A digital dollar-pegged token referenced in the update, which Sky said remains fully collateralized and verifiable on-chain.
  • Cross-chain messaging protocol: Blockchain infrastructure that lets different networks exchange data and instructions.