DeFi attacks are on the rise — Will the industry be able to stem the tide?

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DeFi attacks continue to increase, with the industry losing over a billion dollars to hackers in the past few months. Can the industry combat hackers? Let us tell you:

One primary reason as to why these groups are drawn to the sector is the sheer amount of funds that decentralized finance platforms hold. Top DeFi platforms process billions of dollars in transactions each month. As such, the rewards are high for hackers who are able to carry out successful attacks.

Another dent in the armor when it comes to DeFi security is the interconnectivity of ecosystems. DeFi platforms are typically interconnected using cross-bridges, which bolster convenience and versatility. The mistake enabled the intruders to forge a system signature that allowed the minting of 120,000 Wrapped Ether coins valued at $325 million. The hackers then sold the wETH for about $250 million in Ether . The exchanged Ethereum coins were derived from the platform’s settlement reserves, thereby leading to losses.

One way through which attackers manipulate asset prices is by targeting assailable price oracles. DeFi price oracles, for example, draw their rates from external sources such as reputable exchanges and trade sites. Hackers can, for example, manipulate the source sites to trick oracles into momentarily dropping the value of targeted asset rates so that they trade at lower prices compared to the wider market.

An analysis of the breach revealed that the attackers obtained a flash loan from the Aave DeFi protocol to get almost $1 billion in assets. This enabled them to get a 67% majority in the voting governance system and allowed them to unilaterally approve the transfer of assets to their address. The perpetrators made off with about $80 million in digital currencies after repaying the flash loan and related surcharges.

 

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We will be very pleased to explain our approach to combat this onslaught of DeFi hacks and exploits. Following decentralized ideals and pushing the envelope of crypto cybersecurity to the next level is of utmost importance to bring a sweeping adoption to crypto space!

Either that or that sector is bound to fail and disappear.

There’s an emerging cybersecurity market, but $HAPI is my favorite. The team is top notch with many high-level partnerships and adoption. $HAPI has a very bright future. 🌈

losslessdefi is the great project to protecting our DeFi system

$HAPI i_am_hapi_one as they just partnered and are working with chainalysis, this is going to be awesome for the self-regulation for the crypto space, everyone will be HAPI as this is a way to combat hackers

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