A bug on Degen Chain’s service providers leads to significant user fund loss, sparking criticism on the layer 3 ecosystem.
A user of the layer-3 blockchain, Degen Chain, lost 90% of their funds during a bridge transfer to Base, an Ethereum layer-2 protocol, due to an internal bug.
On July 16, Degen Chain user Tempe.degen reported a loss of 785,000 DEGEN (DEGEN) tokens worth almost $5,000 during a bridge transfer, representing 90% of the total funds being transferred. Following an internal investigation, Degen Chain blamed a bug for the user’s misfortune.
The protocol shared its intent to square off all users that have lost funds due to the bug in an X post:
