Re:Wormhole confirms all $320M in funds have been restored
by 22c on Thursday February 03, 2022 @06:40PM
(#30200656)
They didn't expand the supply of SOL, they "expanded" the supply of wormhole bridged ETH, or rather returned the liquidity ratio of bridged ETH to 1:1.
Bridged assets are really just an IOU issued by the bridge, all the assets remain in custody of the bridge on whatever network they came from (in this case, Ethereum mainnet). As long as you can take that "IOU 1 ETH" to the bridge and get back 1 mainnet ETH, everything runs smoothly. If you can't, the market will decide the value of those IOUs accordingly.
Bridged assets are really just an IOU issued by the bridge, all the assets remain in custody of the bridge on whatever network they came from (in this case, Ethereum mainnet). As long as you can take that "IOU 1 ETH" to the bridge and get back 1 mainnet ETH, everything runs smoothly. If you can't, the market will decide the value of those IOUs accordingly.