Voting on burning $RUNE and reducing collateralisation ratios underway

**THORChain node operators are voting on ADR028**, a recovery proposal following the May 15th vault compromise that resulted in approximately $10.7M in losses. **Key elements of the recovery plan:** - Protocol-Owned Liquidity (POL) will absorb losses first, with the remainder spread across synth holders - POL will be reduced to zero and gradually replenished through redirected system income - **No new RUNE minting, selling, or holder dilution** - The attacker's node will be fully slashed while innocent nodes in the same vault are protected **Technical approach:** - GG20 TSS implementation remains in place with patches and upgrades - Trading resumes only after vulnerability patches and successful churn - Slower, security-focused release cadence going forward **The exploit details:** Investigators believe the attacker exploited a GG20 TSS vulnerability that leaked vault key material over time, allowing reconstruction of the vault's private key. A newly churned node (thor16ucjv3v695mq283me7esh0wdhajjalengcn84q) is linked to the attack. The network automatically detected abnormal behavior and halted signing activity, preventing further unauthorized transactions. Initial indications suggest only protocol-owned funds were affected, not individual user swaps. **White hat bounty offered** to the attacker for fund return, with proportional rollback of recovery plan if partially returned. THORChain maintains its neutral, permissionless stance - the attacker's swaps won't be censored once trading resumes. Full technical details: [ADR028](https://gitlab.com/-/snippets/5992927) | [Exploit Report](https://thorchain.org/blog/thorchain-exploit-report-1)

THORChain has published a comprehensive post-mortem report detailing the May 15, 2026 security exploit. The report covers: - Complete timeline of the incident - How the protocol's security layers detected and responded to the breach - Technical analysis of the vulnerability - Proposed solutions outlined in ADR-028 The team has also released a two-part video analysis providing additional context on the exploit. [Read the full report](https://thorchain.org/blog/thorchain-exploit-report-1)

**Bridges don't actually move your assets** - they lock them in vaults and issue wrapped tokens as IOUs. When you bridge ETH to Solana, your real ETH sits locked while you receive a synthetic token representing a promise to unlock it later. **This architecture creates a critical vulnerability**: the system must maintain perfect synchronization between locked assets and minted synthetics. Major exploits include: - Wormhole: $320M lost - Ronin: $600M lost - Nomad: $190M lost **THORChain uses a different approach** with atomic swaps. When swapping ETH for SOL, your Ethereum enters a threshold-signature vault while native Solana from a separate vault goes to your address. No wrapped tokens exist. **Key differences**: - Bridge hack → your wrapped tokens become worthless - Atomic swap → transaction either completes or refunds, no synthetic tokens at risk **The tradeoff**: Native swaps are slower and more expensive than bridges, but eliminate the failure mode where users discover their wrapped tokens have no backing. With atomic swaps, you never hold someone else's promise.

THORChain released its Q4 2025 ecosystem report showing significant activity across its decentralized liquidity protocol. **Key Metrics:** - $4.02B in swap volume - 108,000 unique swappers - 1.22M total trades - $5.02M collected in swap fees - Beta launch of swap.thorchain.org **2026 Roadmap Highlights:** - Solana integration - ZCash support - Rapid Swaps feature The numbers represent a slight decrease from Q3's $4.5B volume and 1.8M swaps, though the platform maintained strong user engagement with over 100,000 active swappers. [Read the full report](https://blog.thorchain.org/thorchain-q4-2025-ecosystem-report-2026-roadmap/)

**THORChain v3.14.0** addresses several critical issues affecting user experience and network operations. **Key Fixes:** - **Swap Speed Restored**: Fixed bug causing trade assets (BTC~BTC) and secured assets to take ~13 minutes instead of instant settlement - **Vault Recovery**: Automated retry system for failed refunds from retired vaults, eliminating manual intervention - **Quote Consistency**: Removed randomness in quote queries to ensure same inputs always return identical results - **Outbound Safety**: All transactions now checkpointed immediately to prevent silent failures **Technical Improvements:** - Retired vault balances automatically recovered and refunded - Streaming swap time estimates now accurate for rapid swaps - Enhanced node safety with automatic retry mechanisms These updates resolve operational overhead, improve swap reliability, and strengthen the overall network infrastructure for cross-chain liquidity.