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Layer-2 zkSync Rescues $1.7M in ETH Stuck in Smart Contract  

2 mins
Updated by Kyle Baird
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In Brief

  • The 921 stuck ETH will be released by zkSync.
  • Smart contracts were not tested before deployment.
  • zkSync Era TVL surges in the fortnight since launch.
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More than 900 ETH has got “stuck” in a smart contract on layer-2 network zkSync due to incompatibilities.

A project which raised 921 ETH in an IDO (initial DEX offering) on layer-2 protocol zkSync is having trouble accessing its funds.

Apparently, the $1.7 million worth of Ethereum has got “stuck” in a smart contract. The funds belong to the ecological project Gemholic which reached out to zkSync for assistance.

An incompatibility with the transfer function prevented Gemholic from withdrawing its Ethereum.

On April 7, zkSync responded with an offer of assistance in recovering the locked assets for the project.

zkSync to the Rescue

The team confirmed that the funds were safe. “We found an elegant solution how to unfreeze the contract,” it stated.

Furthermore, the protocol is not EVM (Ethereum Virtual Machine) equivalent, which is what caused the incompatibility.

It noted that Gemholic recently deployed their token contract and performed a pre-sale launch on zkSync Era. “After deployment, they encountered an issue with their contract due to the usage of the .transfer() function,” it explained.

Moreover, the smart contracts were deployed on zkSync without being tested first. ConsenSys developers warned against using this particular Solidity transfer function back in 2019.

The function uses a hardcoded fixed gas amount which causes them to fail because transfers now use more. zkSync also warned about this limitation and its impact on smart contracts.

Furthermore, the team checked the source code of “dozens of popular crypto projects,” finding they all complied with the new dynamic system.

“In this case, we identified an elegant solution which can solve a broader class of gas-related problems. It will require minimal changes in the gas metering of the protocol, but will allow for full recovery of the funds.”

Layer-2 Activity Surges

Since it launched in late March, zkSync Era has seen a tremendous spike in activity. It claims that it is “the most any scaling solution has ever undergone in such a short period of time.”

In the fortnight since its launch, zkSync Era has risen to the fourth-highest TVL and third-highest usage of all layer twos, according to L2beat.

Arbitrum One still leads the pack with a market share of 66% and TVL of $6 billion. zkSync has just $149 million TVL by comparison.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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