Binance has led a $150 million funding round of Sky Mavis to restore funds on the Ronin Bridge
Binance has just announced they are the name to lead a 150 million USD funding round of Sky Mavis, the popular game Axie Infinity developer. As reported on the Binance blog, this funding round will be used to restore funds on Ronin Bridge, refunding users affected by the Ronin Validator Hack. Joining Binance also included Animoca Brands, a16z, Dialectic, Paradigm, and Accel.
Binance Leads $150 Million Funding Round for Sky Mavis (Axie Infinity)
On March 23rd, Sky Mavis Ronin validator nodes and Axie DAO validator nodes were compromised, resulting in 173,600 Ethereum and 25.5 million USDC being withdrawn from the Ronin bridge. The root cause of the attack was that the small authentication set made it much easier to penetrate the network. Sky Mavis will deliver up to 21 validators over the next three months, split between different stakeholders in the Axie community, and jointly manage an open-source codebase.
In conjunction with the Sky Mavis fund, this new round of funding will ensure that all users are reimbursed. The Ronin network bridge will open after a security upgrade and audit, which is expected to take several weeks. In the meantime, Binance has opened ETH/USDC withdrawals and deposits. Once the bridge is back up and running, all users will be able to withdraw usually. The hacked 56,000 ETH from the Axie DAO treasury will remain reallocated as Sky Mavis works with law enforcement to recover the funds. If the funds are not fully recovered within two years, the Axie DAO will vote on the next steps for the treasury.
“For the global ecosystem to continue thriving and maturing, it is imperative that we work together, especially when it comes to security, which is our strong suit. We have seen the tremendous work and growth of the Sky Mavis team since working together on the Axie Infinity project on Binance Launchpad. We strongly believe Sky Mavis will bring a lot of value and growth to the larger industry. We believe it’s necessary to support them as they work hard to resolve the recent incident”, Binance CEO “CZ” Changpeng Zhao, stated.
In addition to funding, Sky Mavis and Binance will work closely together on projects, including selling Land NFT exclusively and enabling Binance login through The Mavis Hub.
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