{"id":32341,"date":"2020-11-25T14:33:11","date_gmt":"2020-11-25T12:33:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=32341"},"modified":"2025-08-28T08:08:41","modified_gmt":"2025-08-28T05:08:41","slug":"chainlink-co-founder-attacks-on-defi-protocols-using-flash-loans-will-continue","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/chainlink-co-founder-attacks-on-defi-protocols-using-flash-loans-will-continue\/","title":{"rendered":"Chainlink co-founder: Attacks on DeFi protocols using flash loans will continue"},"content":{"rendered":"<p>Price oracles are a weak spot for DeFi protocols, and attacks on them will continue and become more sophisticated. This was <a href=\"https:\/\/open.spotify.com\/episode\/01bX05O7w6hOkUtlR9NOWD\" target=\"_blank\" rel=\"noopener noreferrer\">stated<\/a> on the Decrypt Daily podcast.<\/p>\n<p>In his words, it is data centralization that makes the price feed mechanism vulnerable.<\/p>\n<blockquote>\n<p>\u00abThe essence of the attack is that there exists a single price data provider, a single exchange. Often, for simplicity and speed of development, data from intra-network DEXs and exchange infrastructure are used to obtain prices and launch DeFi applications\u00bb, Nazarov explained.<\/p>\n<\/blockquote>\n<p>To manipulate prices even on a single exchange, attackers require substantial capital. They opt for flash loan attacks because they give them access to large sums over a short period. This, in turn, allows hackers to manipulate token prices, distorting oracle data.<\/p>\n<p>The danger of such attacks is that they do not require knowledge of code, only sufficient funds. However, obtaining data from several intra-network exchanges will not protect DeFi platforms, although it will make them more complex and costly, warns Sergey Nazarov.<\/p>\n<blockquote>\n<p>\u00abTo counter such attacks, DeFi platforms must significantly broaden the range of price data they receive. Then manipulating an asset&#8217;s price would only be possible by distorting its global value\u00bb, he added.<\/p>\n<\/blockquote>\n<p>In recent months, several DeFi platforms have been hacked using flash loan attacks. The loss from the Value DeFi <a href=\"https:\/\/u1f987.com\/en\/news\/value-defi-project-loses-6-million-in-flash-loan-attack\">stood at<\/a> $6 million, the Akropolis project&#8217;s liquidity pools <a href=\"https:\/\/u1f987.com\/en\/news\/hacker-drains-2-million-from-akropolis-defi-protocol\">lost<\/a> $2 million.<\/p>\n<p>Subscribe to the ForkLog channel on <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"> YouTube<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Price oracles are a weak spot for DeFi protocols, and attacks on them will continue and become more sophisticated. This was stated by Chainlink co-founder Sergey Nazarov on the Decrypt Daily podcast.<\/p>\n","protected":false},"author":1,"featured_media":32342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1154,1093,1138],"class_list":["post-32341","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-crimes","tag-defi","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=32341"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32341\/revisions"}],"predecessor-version":[{"id":32343,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32341\/revisions\/32343"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/32342"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=32341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=32341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=32341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}