Base, the Coinbase-incubated Ethereum Layer 2 (L2) chain, has been unable to accept deposits or withdrawals for nearly 48 hours.
On June 25, L2 reported that it encountered a problem that caused an invalid block to be selected. This statement was issued on 25 June, 17:21 UTC. The problem was isolated and resolved, and the group soon announced that recovery was underway.
However, as of 26 June, 10:36 UTC, the matter was not over. In fact, the chain’s profile showed that the mainnet block transaction was “unhealthy.”
Apart from block creation, deposits and withdrawals were also affected for the second day. Of course, the withdrawals were only slightly damaged, but the deposits were experiencing a “significant damage.”
For his part, Jesse Pollak, the co-founder of Base, assured users that the funds were safe and that they were working on death.
He added that stopping the chain to solve the problem is not appropriate and could make it difficult for them to succeed in the future.
All funds are/were safe. But stopping is not okay, and we will use this to continue promoting Base as a global financial platform, 24/7. Thank you for your patience.
Base betting on tokenization
Separately, Pollak has indicated that Base will allow DeFi as a borrowing and lending method for tokenized assets once they are on the chain.
This is part of a larger bet a symbol as the initial phase increases. Unfortunately, interrupting the chain like the current one doesn’t seem like a good idea for such a purpose.
That said, Base started in H2 2023 and has grown significantly over the past few months. It has raised $184M with a net value (TVL) of $4B.
Source: DeFiLlama
Half of the $4B deal closed is on DeFi lending platform Morpho Blue. It would appear that the default would undermine investor confidence and trigger outflows.
Brief Summary
- The base chain has experienced a compatibility issue that has partially disrupted withdrawals and stopped deposits.
- Jesse Pollak, co-founder of Base, is betting big on DeFi-enabled investments like lending and borrowing systems.
