Gemholic, an ecological project that raised 921 ETH in an initial DEX offering (IDO) on layer-2 protocol zkSync, faced a glitch that made it impossible for them to withdraw $1.7 million worth of Ethereum.

The team reached out to zkSync for assistance, who responded by offering a solution to recover the assets. The smart contract used by Gemholic was not tested before being deployed on zkSync, leading to an incompatibility with the transfer function that resulted in the funds being locked.

ConsenSys developers had previously warned against using the Solidity transfer function used by Gemholic’s smart contract in 2019.

Since launching in March, zkSync Era has become the fourth-highest TVL and third-highest usage of all layer twos, rising to $149 million TVL.