Merlin
Status
Mainnet
Type
Sidechain
Fee Token
-
TVL
₿ 0
Merlin is an implementation of Polygon CDK chain. It likely is running a Polygon chain on top of a permissioned fork of the EVM. Its documentation shares that it will add Bitcoin native security in the future, but no code or research has been released on this topic.
Data Availability
Settlement Assurance
Bridge
Network Operator
Risk Analysis
Bridge Custody
High risk
🚨
Information on multi-sig signers not available
We are currently reviewing the bridge program related to Merlin. Due to there being no information signers of the multi-sig custodying users' funds, we classify the bridge program as high risk. The vault that mints BTC on Merlin is an upgradeable contract.
Data Availability
High risk
🚨
Uses a DAC for offchain data availability. Members under review
Merlin chain is built on the Polygon CDK stack. In its Github, it has a copy of the Polygon CDK Committee contract. In the contract, it states that the admin has the control to set up the committee, so it is likely that the members of this committee are permissioned and selected by the Merlin Chain operator.
Network Operator
High risk
🚨
Blocks are produced by a centralized sequencer
Merlin chain blocks are currently produced by a centralized sequencer.
Settlement Assurance
High risk
🚨
zkSNARKs ensure state correctness, but no settlement guarantees inherited from Bitcoin
Merlin uses zkSNARKS to ensure state correctness. The Merlin prover posts validity proofs of execution to its L1 contract to finalize state transitions. It is unknown which chain Merlin settles to. Its documentation previously pointed to Ethereum, but recent contracts cannot be verified on Ethereum.
Critical Risk Items
All facets of Merlin chain are managed by a centralized operator. Some code is not open-source.
Merlin Chain contracts are all currently upgradeable by an admin. The contracts it has listed on its CDKValdidium can not be verified. It is likely that Merlin Chain is running their own permissioned fork of an EVM chain for their L1 blockchain. Because we cannot verify the L1 blockchain Merlin Chain is currently settling to, we have listed it as a high risk chain for depositing funds.
Merlin L1 smart contract not verified
We are currenly unable to verify if the smart contracts listed in Merlin's Github are in fact the contracts used on its mainnet. The main contract for Polygoin CDKValidium on Ethereum was previously listed as the Merlin L1 contract in its documentation, but that was removed and no longer listed. Merlin chain have announced they will deploy their chain on Bsquared Network's L1 blockchain, which is a permissioned fork of Ethermint. New contracts have been listed in its Github, but their L1 RPC points to a different chain that is not Bsquared Network.