soo i spent some more time reading @hibachi_xyz contracts to better understand their "if we ever rug (we won't), you can still get your funds" claim
tldr: they are lying and the EOA upgrader is not the only issue 😅🧵
for starters, @hibachi_xyz is a central limit order book (CLOB) whose main bridge is on @arbitrum, it has an offchain logic that is supposedly proven onchain, and posts encrypted data to @celestia, claiming to redefine what it means to trust an exchange
encrypted inputs to the CLOB are posted on @celestia to supposedly guarantee a "forced exit" mechanism similar to the old @dYdX v3 or @zksync lite. in fact, a "HibachiEscape" contract can be found in the bridge
the first thing to notice is that, while zk proofs are indeed used, inputs are not connected in any way to @celestia (e.g. via blobstream). there is no guarantee at all that all data used by the engine has indeed been published, making it trivial to cause loss of funds.
third, it's not clear how the data from @celestia is supposed to be decrypted in order to generate the zk proof. no information at all on escapes can be found in their docs.
Fourth, the escape mechanism can only be used when the system is frozen, but only a permissioned admin can trigger the freeze. This is the main big difference with @dYdX v3 and @zksync lite, where freezing is permissionless if withdrawals are not processed in time.
fifth, as already mentioned, everything is controlled by a single EOA. in such cases, imo, it's not just about trusting them, but also trusting their OPSEC as it is sufficient to compromise this key to steal everything.
given that the offchain program is not public, it is currently impossible to perform a full review of the system. if, in the meantime, any of you is curious to look at the contracts, we just made them available through our Disco UI:
916
0
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.