It is possible for the bridge to be over-collateralized (i.e. hold more of an ERC20 asset on Ethereum than exists on Avalanche) for three reasons. These are all expected. 1. There are new transfers from Ethereum to Avalanche. The bridge only processes transfers once the Ethereum transaction receives 35 confirmations. Before then, the collateral balance will be more than the wrapped asset supply. 2. AEB collateral has been transferred to the new AB bridge, but not all AEB tokens have been converted to AB tokens on Avalanche yet. 3. Bridge fees have accumulated on the Ethereum side. The enclave doesn't immediately collect the fees generated from the bridge. Instead it holds all collected fees of each asset in the bridge wallet until a configured threshold is met. At which point, the fees are sent to a separate wallet.

Chat with Ava Labs | Validate on Avalanche | Build on Avalanche

Did this answer your question?