The Multichain Hack & The New Dogechain $DC Converter Tool: Key Points to Note and Why Is it Important
On July 6th, 2023, the crypto community went through another sore breached bridge event, this time with a very popular cross-chain bridge, Multichain. However, what was said to be a hack could most likely have been a rug. This may have been expected, following the arrest of its CEO, Zhaojun.
Many blockchain networks were affected by the rug, which resulted in a massive drain of funds from its pools, and one of those blockchains was Dogechain. Around $650,000 was drained from the stablecoin pools on the ETH <> DC bridge, on the Ethereum side. This has left the bridged stablecoins on Dogechain in limbo and worthless.
Fortunately, with the information shared by the community and the vigilance of the Dogechain team, the hack was detected in time to stop the drainage of the ERC-20 $DC pool and limit the damages on Dogechain.
Acting quickly, the team pulled ETH/DC liquidity from Uniswap and bridged them back on Dogechain, and requested all centralized exchanges to stop deposits and withdrawals of ERC20 $DC tokens.
Going further, Dogechain’s PoA validators voted to immediately freeze the Multichain wallet address holding the $DC mainnet tokens, hence, removing the possibility of the hackers accessing 6.5 billion $DC
However, this resulted in a colossal effect: ERC20 $DC are now considered worthless as they can no longer be traded on Uniswap or deposited on centralized exchanges and for holders of these tokens, there had to be a solution provides to give them back their utility. The only way is to get ERC20 $DC converted back to DOG-20 $DC.
In view of this solution, the Dogechain team worked hard for a week to develop the ERC-20 to DOG-20 $DC Converter Tool and it was finally launched on July 14th, 2023.
Key Points to Note About Converting ERC-20 $DC to DOG-20 $DC
1. You will be able to connect your EVM wallet holding ERC20 $DC and convert them 1:1 for DOG20 $DC.
2. When you convert the ERC-20 $DC to DOG-20 $DC, the ERC20 $DC tokens will be destroyed.
3. Converting ERC-20 $DC to DOG-20 $DC and the destruction of ERC-20 $DC after conversion does not mean that new DOG-20 $DC will be minted and given to you who converted. The DOG20 $DC tokens provided will be from the Loyal Shibes allocation.
(Check this wallet address on Dogechain Explorer: 0xBce77b0d91e98E4524E74Fd378A3af5c9B94528e).
4. After converting, you will receive the DOG20 $DC tokens in the same EVM wallet you converted with, so make sure the wallet is compatible with custom tokens. To access the tokens, add the Dogechain mainnet network to your wallet. (You can use Chainlist.) Then add the $DC contract address.
5. But the conversion is not done immediately, it can take a week to get to your wallet. This is to ensure the security of this mechanism and to prevent further manipulation by whoever is holding the Multichain smart contract private keys.
The timeframe will allow the Dogechain team to detect any additional minting of ERC20 $DC and prevent it from getting converted into DOG20 $DC. As a result, the token distribution will occur once per week, every Friday at 0:00 AM UTC.
6. You will have until 0:00 AM UTC on Friday to request your conversion. If done later, you will have to wait until the next Friday to receive your DOG20 $DC.
7. In case the team detects malicious activities from the Multichain smart contract (e.g. minting new ERC20 $DC tokens), the service might be temporarily interrupted to deal with the threat.
How To Convert ERC-20 $DC to DOG-20 $DC Using the Converter Tool
1. Go to https://dive.dogechain.dog/convertDC and connect the wallet that holds your ERC20 $DC tokens. Make sure you have access to the wallet and that it accepts custom tokens.
2. Enter the number of tokens you want to convert and click on “Convert”.
3. Confirm the transaction in your wallet.
4. Once the transaction is successful, you will see a confirmation message — “Success”.
Now, all you have to do is wait for Friday at 0:00 AM UTC to get your DOG20 $DC tokens in your wallet. You will receive the same amount of tokens that you converted into your wallet.
Dogechain is a Layer 1 blockchain that leverages the Polygon Edge framework to become a stand-alone EVM-compatible chain. It was created to bring utility to Dogecoin ($DOGE) by enabling it to be wrapped by a smart contract and bridged to the chain where it can be used to engage in different Web3 and DeFi use cases.
Dogechain is popularly called the “memechain” and it is a community-first ecosystem for $DOGE believers and holders created by Dogecoin enthusiasts who believed that $DOGE can do more than just be held.
Connect and stay updated with the latest news and updates of the Dogechain Family by joining its social sites: https://linktr.ee/dogechain