Li.Finance

LI.FI is a cross-chain bridge aggregation protocol that supports any-2-any swaps by aggregating bridges and connecting them to DEXes and DEX aggregators.

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release:
• Aka LiFi. Li stands for Linked.

Audits & Exploits

• Bug bounty program can be found [insert here].
• CodeArena is 'used for auditing' (2-2022). However, when LiFi got exploited (20-3-2022) it stated: "The timing could not have been more unfortunate as we are only a week away from the start of our audits."

Bugs/Exploits

• LiFi $11.6M exploit on mainnet & Arbitrum via arbitrary call, after contract facet added, infinite approvals impacted (7-2024).
• From their post-mortem (21-3-2022):

"~$600K have been stolen from 29 wallets. On March 20th, 2022, an attacker exploited LI.FI’s smart contract, specifically our swapping feature which allows us to perform swaps before bridging. Instead of actually swapping, they were able to call token contracts directly in the context of our contract. As soon as the team had been notified of the exploit, we disabled all of the swap methods in our smart contract.

Out of the 29 affected wallets, we have reimbursed 25 of them (86%) immediately, in the total amount of $80k. For the remaining four wallets (notional size ~$517k), in order to reduce our treasury damage, we are offering to transform the lost funds into an angel investment into LI.FI and thus, future LI.FI tokens under the same terms as our investors in the current funding round."

Governance

Admin Keys

• From their docs (2-2022):

"While our smart contracts are obviously running decentralized, our backend has to be centralized.

Why? The amount of data processing can't be processed on the blockchain in a fast enough manner and at the same time, it would cost hundreds of dollars per swap-computation from a gas-fee perspective.

Will it change? If the future allows it, we'd also love to decentralize our infrastructure. We know that some projects are working on this and we're watching them closely. Around that, we also need a proper dev-ops ecosystem that allows us to keep such an infrastructure up and running, maintain it while keeping it fast and secure for the user.

We have two kill switches: 1. on API level where our route calculation starts ignoring the bridge and 2. on smart contract level - whereby we also provide the option to ignore kill switch checks for the protocol that have integrated us very deeply."

Technology

• Whitepaper or docs can be found [insert here].
• Code can be viewed here. From their docs (2-2022):

"Our smart contracts are open source, but our API is not. This is our competitive advantage and we're handling it and aligning our strategy with the big DEX aggregators like 1inch and Paraswap, who also keep their API closed source."

Implementations

• Built on: from this thread (13-3-2022):

"The supported networks right now are EVM compatible Blockchains and Ethereum L2 Solutions only: Ethereum, Optimism, Binance Smart Chain, xDai, Polygon, Fantom, Arbitrum, Avalanche"

How it works

• From this thread (13-3-2022):

Interoperability

• From this thread (13-3-2022):

"Big advantage Li.Fi has over a regular bridge in therms of UX is that you as user don't need to worry which token is supported by the bridge, you just choose any available token from the sending wallet and choose any available token for the receiving end. This is achieved by integrating AMMs and most notably swap aggregators like

@1inch, @paraswap, @0xProject, @OpenOceanGlobal

Li Finance will then propose you the most convenient routes you can select from the currently most popular bridges, @MultichainOrg, @HopProtocol, @ConnextNetwork, @cbridge where the user gets to choose e.g. the faster over the cheaper route"

Roadmap

• Can be found [Insert link here].

Usage

LI.FI crossed $7B in all time volume, ~9M txs, 1.8M users – announced integration with Robinhood (10-5-2024).

Team, Funding and Partners

Team

• Full team can be found [here].
• From their docs (2-2022):

"We work with almost 20 people on doing nothing else than that: bridge aggregation. We do just one thing, B2B, and do that really well. On top, we have an experienced team with a lot of experience building SDKs and integrations and know how to build a sustainable and smooth company structure and developer environment around that."

Funding

• Li.Fi announced $5.5 million funding round (12-7-2022).
• From their docs (2-2022):

"Over 50% of all bridge developers have actually invested in us. We're very close to them as we bring them more volume."

Partners

• LI.FI has joined the Cross Chain Coalition (9-8-2022).

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