How Does Bedrock Work?

Liquid Staking|Risk C-|7 mechanisms|6 interactions

A multi-chain liquid staking and restaking platform offering BTC and ETH liquid staking tokens across 15+ blockchains. It holds $335M in deposits. Its C- grade reflects two major incidents: a $2M exploit via an unaudited mint function and a $47.59M coordinated exit in 100 seconds that exposed extreme liquidity concentration.

TVL

$346M

Sector

Liquid Staking

Risk Grade

C-

Value Grade

C

Core Mechanisms

Liquid-Staking/BTC

Novel

uniBTC Bitcoin liquid restaking token

Novel BTC liquid restaking token across multiple chains. Exploited in September 2024 via unaudited mint function.

Liquid-Staking/ETH

uniETH Ethereum liquid staking token

Standard Ethereum LST pattern (Lido since 2020).

Restaking/Multi-Asset

Novel

Multi-asset restaking across BTC, ETH, and other assets

Novel multi-asset restaking approach spanning multiple base assets and chains.

Cross-Chain/Multi-Deployment

Deployed across 15+ chains with bridged LSTs

Multi-chain deployment with bridged tokens. Standard pattern but extreme breadth.

Oracle/External

External oracle for multi-chain LST pricing

Oracle pricing across 15+ chains creates complexity.

Governance/Token

BR governance token

Standard governance token.

Staking/Delegation

Validator delegation for staked assets

Standard delegation pattern.

How the Pieces Interact

uniBTC mint functionAccess controlCritical

September 2024 exploit: unaudited mint function allowed unauthorized minting of uniBTC. Demonstrates weak pre-deployment security practices.

Liquidity concentrationCoordinated exitCritical

July 2025: 26 addresses drained $47.59M in 100 seconds. Extreme liquidity concentration enables coordinated exits that destabilize the protocol.

Multi-chain deploymentBridge securityHigh

LSTs bridged across 15+ chains inherit bridge security risks. A bridge exploit would create unbacked LSTs on destination chains.

Oracle pricingMulti-chain complexityMedium

Oracle pricing for LSTs across 15+ chains creates opportunities for cross-chain price manipulation and arbitrage at protocol expense.

Multi-asset restakingCorrelated slashing riskMedium

Restaking across BTC, ETH, and other assets creates correlated slashing risk if validators misbehave across multiple networks simultaneously.

What Could Go Wrong

  1. September 2024 uniBTC exploit ($2M) caused by unaudited mint function demonstrates weak pre-deployment security practices.
  2. July 2025 coordinated exit: 26 addresses drained $47.59M in 100 seconds, exposing fragile liquidity concentration and potential insider coordination.
  3. Multi-chain deployment across 15+ chains amplifies bridge risk and creates cross-chain supply accounting complexity.

Multi-Chain Bridge Exploit and LST Unbacking

Elevated

Trigger: A bridge used to deploy uniBTC or uniETH across chains is compromised, creating unbacked LSTs on 3+ chains simultaneously

  1. 1.Bridge exploit allows attacker to mint unbacked LSTs on destination chains LST supply on destination chains exceeds actual backing on source chain
  2. 2.Market discovers supply discrepancy; LSTs begin trading at discount Cross-chain arbitrage fails as underlying backing is insufficient
  3. 3.LST depegs cascade across all 15+ chains as confidence collapses DeFi protocols using Bedrock LSTs as collateral face cascading liquidations
  4. 4.Coordinated exit repeats as remaining holders race to redeem on source chain Source chain liquidity exhausted; late redeemers left with unbacked tokens

Risk Profile at a Glance

Mechanism Novelty6/15
Interaction Severity17/20
Oracle Surface5/10
Documentation Gaps3/10
Track Record10/15
Scale Exposure5/10
Regulatory Risk3/10
Vitality Risk5/10
C-

Overall: C- (54/100)

Lower score = safer

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