The delay in completing Multichain’s backend update caused users’ transactions to get stuck on the protocol for three days. Unsettled by the uncertainty at Binance, MULTI suspended trading. Now, the cross-chain bridge protocol is starting to take action on Stargate.
Stargate ends Phantom pool amid Multichain crisis
Bridge protocol Stargate is starting a vote to stop the Phantom pool after recent events affecting Multichain. The first measure in the proposal includes setting STG emissions in Phantom pools to zero. By doing this, Stargate plans to temporarily halt emissions. It also aims to minimize potential disruptions caused by the uncertainties surrounding Multichain.
Voting has now been overwhelmingly yes. The final decision will be made on May 30.
After the vote, Stargate plans to disconnect Phantom pools from all other pools within the network. This isolation is necessary to prevent any potential contamination or adverse effects on the wider Stargate ecosystem.
Currently, there are $11.4 million worth of LP invested in this pool. Phantom pools are currently effectively isolated from other Stargate pools.
What happened?
Multichain (MULTI) users reported delays in receiving their money after an upgrade earlier in the week. Several Multichain users complained that their funds were stuck in the protocol for as long as 72 hours. Part of the problem was due to a backend update that the team said was taking longer than usual. In an update provided on May 23, the Multichain team said:
Backend upgrade is taking longer than expected. Most routes are working as usual as some routes (Kava, zkSync, Polygon zkEVM) are temporarily suspended for now. All affected processes will arrive after the upgrade is complete.
Meanwhile, ongoing discussions on Multichain’s Telegram channel as of May 24 revealed that all routers, except one router, are undergoing an upgrade. One of the admins in the group said, “Only one router left on the upgrade. The other 6 routers are working fine right now,” while another stated that the team is working on the last router and operations “will be back to normal when finished.”
However, the MULTI price dropped over 24% within hours. Its price fell from $7.09 to $5.39, then its current price of 3.41. The uncertain environment throughout the week has printed a few double-digit candles on the MULTI chart.
What’s next?
Stargate recommends removing any Multichain linked USDC POL to better protect the ecosystem and mitigate potential issues associated with any USDC in Fantom.
“Stargate should consider expanding the bridging options for Fantom users in other ways, including possibly via Hydra,” the project management said. As we quoted as Kriptokoin.com, the first measure for Multichain came from Binance, which stopped 10 trading pairs.
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