LiFi Protocol
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 38 → 65. Problems weighed by who is responsible: incidents the subject suffered −6.4, problems around the subject, caused by others −3.2, concerns that are not fraud −3.2; legitimacy credit long-running +8, regulated +5. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -3.2 |
| Incidents it suffered (e.g. hacks) | -6.4 |
| Problems around it, caused by others | -3.2 |
| Long-running | +8 |
| Regulated | +5 |
| Sum | 65 |
Score: 65/100 (kept between 0 and 100)
How scoring works →Summary
LI.FI (formerly Li.Finance) is a cross-chain liquidity aggregation protocol founded in 2021 that routes swaps across bridges and DEXs via a unified API, SDK, and widget. The protocol has suffered two distinct smart contract exploits — a $600,000 approval drain in March 2022 and an approximately $11.6 million drain in July 2024 — with security firm PeckShield noting the root causes were 'basically the same.' Both incidents involved arbitrary-call vulnerabilities that allowed attackers to abuse users' infinite token approvals, raising concerns about repeated security failures despite prior disclosure.
Connected Entities
7 entities · 60 linked investigations- Phantom Wallet→mentioned with→Ethereum(70%)
- Binance→mentioned with→Ethereum(65%)
- Uniswap→mentioned with→Ethereum(80%)
- Arbitrum→mentioned with→Binance(65%)
- LiFi Protocol→mentioned with→Arbitrum(65%)
- LiFi Protocol→mentioned with→Ethereum(65%)
- LiFi Protocol→mentioned with→Binance(65%)
- LiFi Protocol→mentioned with→Phantom Wallet(60%)
- LiFi Protocol→mentioned with→Uniswap(60%)
- LiFi Protocol→mentioned with→Kraken(60%)
- + 2 more
Connected Through
6 shared actors · 605 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □Ethereumorganization
- □Binanceorganization
- ⌂Uniswapprotocol
- □Arbitrumorganization
Timeline(10 events)
2021
LI.FI (formerly Li.Finance) founded by Philipp Zentner to provide cross-chain bridge and DEX aggregation infrastructure.
20 March 2022
First exploit: attacker drains approximately $600,000 from 29 user wallets via an arbitrary-call vulnerability in the pre-bridge swap feature. Team disables swap methods and begins post-mortem.
21 March 2022
LI.FI publishes post-mortem blog post on the March 2022 exploit and announces partial reimbursement plan.
May 2023
LI.FI closes $17.5 million Series A funding round co-led by CoinFund and Superscrypt.
11 July 2024
GasZipFacet smart contract facet deployed to the LI.FI diamond proxy — approximately five days before the second exploit.
16 July 2024
Second exploit: attacker exploits missing whitelist validation in GasZipFacet's depositToGasZipERC20() function, draining approximately $11.6 million from 153 wallets across Ethereum and Arbitrum. LI.FI disables the vulnerable facet and issues emergency warning.
16 July 2024
PeckShield publicly states the 2024 bug is 'basically the same' as the 2022 exploit.
19 July 2024
LI.FI publishes Security Incident Report for the July 16 exploit, attributing the vulnerability to 'individual human error in overseeing the deployment process.'
23 July 2024
LI.FI initiates voluntary compensation plan for all 153 affected wallets, backed by major investors.
11 December 2025
LI.FI raises $29 million Series A extension led by Multicoin Capital and CoinFund, bringing total capital raised to approximately $51.7 million.
Decision Log
- slot 455364649 · hash 9iPYq86VY2f597PvPwdk8VkqXTzVacViuHnLhWuSWBXw
- slot 423217207 · hash FsNYemB7dbNi7SFKNe62QQ4iBBcDexvvGWGQWhKWLRJF
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 20 of 24 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/30/2026, 7:10:20 PM
last updated: 10/10/2026, 6:44:54 PM
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