Babylon contributed the following description of Babylon Chain:
Babylon↗ is a shared security project whose vision is to leverage the security of Bitcoin for enhancing the security of PoS chains and L2s.
Zellic conducted a security assessment for Babylon from April 1st to May 31st, 2024. During this engagement, Zellic reviewed Babylon Chain's code for security vulnerabilities, design issues, and general weaknesses in security posture.
Babylon plans to deploy the system in two phases. The first phase involves only Bitcoin locking, where Bitcoin holders submit a staking transaction to the Bitcoin network. Slashing transactions will not be signed in this phase, so slashing will not be possible.
The Babylon mainnet phase-2 builds on phase-1 by adding support for Proof-of-Stake (PoS) systems, including the Babylon chain, to activate staking.
Our review covered both phases of their system, and therefore, our report splits the findings into two separate sections. Since Babylon expects to make significant changes to the phase-2 system in the coming months, the remediations for those issues remain open.