A user of the Layer-3 blockchain network Degen Chain lost 90% of their funds during a bridge transfer to the Ethereum Layer-2 protocol Base due to an internal error. On July 16, Degen Chain user Tempe.degen reported that nearly 785,000 DEGEN tokens worth almost $5,000 were lost during a bridge transfer, representing 90% of the total transferred funds.
What’s Happening on Degen Chain?
Following an investigation into the matter, Degen Chain attributed the user’s misfortune to an error. The protocol addressed all users who lost money due to the error in a post:
“Such errors should never occur, especially when user funds are involved. If you have encountered a similar issue, we will create a form to ensure everyone gets their money back.”
Degen Chain blamed its service providers for poor service, leading to disruptions and user losses. Despite blaming the service providers, Degen Chain admitted partial fault for not proactively changing or demanding corrections from the providers. The team added:
“We will make a significant change in the coming weeks to ensure we receive the best possible service. This won’t be a quick fix, but we will turn things around. We apologize to everyone affected.”
Details on the Issue
Despite Degen Chain acknowledging the error and proposing a solution, community members on X shared their dissatisfaction with how easily users can lose funds during bridge transfers. Most critics believe Layer-3 ecosystems like Degen Chain are not ready for mainstream adoption. Common reasons include persistent disruptions lasting several days.
Recently, Ethereum Layer-2 scaling solution provider Optimism announced plans to add Layer-3 applications on top of the OP Stack. The official announcement stated that the OP Stack is the open standard codebase powering development on the Superchain, but it is not limited to Layer-2 chain deployers and application developers. However, the team added that the Layer-3 ecosystem could also be utilized.
