LiFi launches multi-bridge governance solution after Uniswap debate

Multichain bridging protocol LiFi has launched a multi-message aggregator for decentralized autonomous enactment (DAO) governance, according to an Aug. 17 announcement from LiFi probe pb Arjun Chand. If implemented by decentralized exchanges, lending apps, and different Web3 protocols, the caller aggregator should assistance prevent governance attacks that originate from cross-chain bridges, according to the aggregator’s documentation.

The announcement comes aft a vigorous statement implicit span information connected the Uniswap forums successful precocious January and aboriginal February, concluding that nary azygous span has each the information features indispensable for unafraid governance.

Crypto speech Uniswap is governed by a decentralized autonomous enactment called UniswapDAO. In January, this DAO began discussing deploying a 2nd transcript of Uniswap to BNB Chain. This opened the question of however Uniswap would beryllium governed connected much than 1 concatenation since, previously, each votes were taken connected the Ethereum network. On Jan. 24, the DAO voted to deploy a 2nd copy of Uniswap to BNB Chain and to usage bridging protocol Celer to nonstop messages from BNB to Ethereum.

Although this connection passed, contention erupted astir immediately implicit the prime of Celer span arsenic the means of sending messages. Some DAO participants feared that Celer was not unafraid capable to forestall cross-chain governance attacks. Instead, they recommended Wormhole, LayerZero, oregon DeBridge beryllium used. Other participants defended Celer arsenic the close choice.

On Jan. 31, the DAO held a 2nd vote connected which span should beryllium utilized for governance. Wormhole won the ballot and was chosen arsenic the authoritative span for governance.

UniswapDAO connection for cross-chain governance. Source: Uniswap.

Despite this triumph for Wormhole, the referendum was contentious. Only 62% of UNI tokens were utilized to formed “yes” votes. By contrast, galore UniswapDAO proposals received astir unanimous votes for oregon against.

In the statement starring up to the vote, galore participants concluded that Uniswap should usage aggregate bridges alternatively of conscionable one. This way, if 1 span became hacked, the different bridges would cull the malicious messages sent by it, and the onslaught would beryllium prevented. However, nary multi-bridge solution was disposable astatine the time. Hence, the proposal's supporters argued that Wormhole should beryllium utilized until a multi-bridge solution could beryllium created.

Related: Token hoarders decision the intent of astir DAOs: Study

In the Aug. 18 announcement from LiFi, Chand said the team’s caller span aggregator would supply “a future-proof solution for antithetic cross-chain messaging needs,” preventing protocols successful the aboriginal from needing to trust connected a azygous span for governance messages.

According to the aggregator’s documents, protocols tin usage LiFi to necessitate that votes beryllium confirmed connected 2 retired of 3 bridges to beryllium valid. For example, if 1 span says that a DAO token holder voted “yes,” but the 2 different bridges accidental that they voted “no,” the “yes” ballot volition beryllium confirmed. The aggregator tin besides beryllium configured to usage 3 retired of 5 bridges oregon immoderate different ratio the DAO wants.

LiFi span aggregator plan diagram. Source: LiFi.

LiFI isn’t the lone squad to make a multi-bridge aggregator for DAO governance. Gnosis released a akin protocol called “Hashi” successful March.

In June, a UniswapDAO committee claimed that Hashi was “not yet production-ready,” had pending audits and did not person a bug bounty. Therefore, the committee concluded that it was unsuitable to grip DAO governance.

The LiFi aggregator has besides not been audited. Chand claimed successful his announcement that “soon, we'll grow its investigating and taxable it for an audit by Trail of Bits.”