LiFi, a multichain bridging protocol, has recently launched a multi-message aggregator for decentralized autonomous organization (DAO) governance. This new aggregator aims to prevent governance attacks originating from cross-chain bridges when implemented by decentralized exchanges, lending apps, and other Web3 protocols. The announcement, made by LiFi research lead Arjun Chand on August 17, states that the aggregator’s documentation provides guidelines on how to use it effectively.
The need for such a solution arose from a heated debate on bridge security that took place on the Uniswap forums in late January and early February. During these discussions, it was concluded that no single bridge possesses all the necessary security features for secure governance. Consequently, UniswapDAO, the DAO governing the popular crypto exchange Uniswap, began exploring the deployment of a second copy of Uniswap on the BNB Smart Chain (BSC). However, this raised concerns about how to govern Uniswap across multiple chains since all votes were previously conducted on the Ethereum network.
On January 24, the DAO voted to deploy a second copy of Uniswap to BSC and to use the bridging protocol Celer to send messages from BSC to Ethereum. However, this decision immediately sparked controversy as some participants feared that Celer was not secure enough to prevent cross-chain governance attacks. They advocated for alternative bridges like Wormhole, LayerZero, or DeBridge. Despite the disagreements, a second vote was held on January 31, and Wormhole emerged as the winner, becoming the official bridge for governance.
Even though Wormhole won the vote, the referendum was not without its controversies. Only 62% of Uniswap (UNI) tokens were used to cast “yes” votes, whereas previous proposals received nearly unanimous support or opposition. Recognizing the need for increased security, many participants suggested using multiple bridges instead of relying on just one. This approach would ensure that if one bridge were compromised, the other bridges would reject any malicious messages, effectively preventing an attack. However, at the time, no multi-bridge solution was available, leading proponents of the Wormhole to argue for its adoption until a more secure solution could be developed.
Enter LiFi’s multi-message aggregator, which aims to provide a “future-proof solution for different cross-chain messaging needs.” According to the aggregator’s documentation, protocols can use LiFi to require that votes be confirmed on at least two out of three bridges to be considered valid. This introduces added security by allowing multiple bridges to validate voting outcomes and mitigates the risk associated with relying on a single bridge. The aggregator can also be configured to use other ratios, such as three out of five bridges, depending on the DAO’s preferences.
It is worth noting that LiFi is not the only team working on a multi-bridge aggregator for DAO governance. Gnosis, another prominent player in the crypto space, released a similar protocol called “Hashi” in March. However, in June, a UniswapDAO committee raised concerns about Hashi’s readiness for production, citing pending audits and the absence of a bug bounty program. Consequently, the committee deemed Hashi unsuitable for handling DAO governance. Similarly, LiFi’s aggregator has not undergone an audit yet, but Chand mentioned in the announcement that they plan to expand its testing and submit it for an audit by Trail of Bits soon.
In conclusion, LiFi’s launch of a multi-message aggregator for DAO governance provides a promising solution to prevent governance attacks originating from cross-chain bridges. By allowing votes to be confirmed on multiple bridges, this aggregator enhances the security measures and greatly reduces the risk of attacks. However, further testing and auditing are required to ensure that the aggregator performs as intended and meets the necessary security standards. Nonetheless, the development of such solutions is a significant step towards achieving a more secure and decentralized future for blockchain technology.
