{"id":81218,"date":"2023-07-04T16:41:23","date_gmt":"2023-07-04T13:41:23","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=81218"},"modified":"2025-09-11T21:34:15","modified_gmt":"2025-09-11T18:34:15","slug":"developers-propose-ethereum-standard-to-curb-defi-project-hacks","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/developers-propose-ethereum-standard-to-curb-defi-project-hacks\/","title":{"rendered":"Developers propose Ethereum standard to curb DeFi project hacks"},"content":{"rendered":"

A group of programmers from the Ethereum community proposed a new standard ERC-7265<\/a>: Circuit Breaker to strengthen the security of DeFi protocols.<\/p>\n

The solution enables developers to insert into smart contracts an automatic \u201ccircuit breaker\u201d that halts the movement of tokens when the threshold outflow rate is reached.<\/p>\n

This will help preserve most of the funds in the event of a hack, noted<\/a> Fluid Protocol founder Meir Bank. The remaining coins stolen by attackers will be easier to recover, he added.<\/p>\n

Developers using the aliases Diyahir, philogy and bd contributed to the creation of ERC-7265.<\/p>\n

\n

\u201cWe all agree that DeFi is not right. There are not only many hacks, but the consequences are catastrophic \u2014 protocols often lose everything as a result of attacks. TVL<\/span> can drop to zero in seconds,\u201d Bank said.<\/p>\n<\/blockquote>\n

According to The Block<\/a>, at the beginning of June the cumulative amount of funds stolen from DeFi protocols reached $2.85 billion. In the last 12 months alone the figure rose by nearly $800 million.<\/p>\n

\"Developers
Source: The Block.<\/figcaption><\/figure>\n

According to Bank, attacks in the sector cause substantial losses because teams cannot react quickly enough. In most DeFi projects any changes are made through a governance system, which also slows the response. This shortcoming would be addressed by an automatic \u201ccircuit breaker\u201d for withdrawals with adjustable parameters.<\/p>\n

\n

\u201cIn case of a hack the attacker will no longer be able to empty a smart contract in a matter of seconds,\u201d Bank stressed.<\/p>\n<\/blockquote>\n

In the group\u2019s view, the mechanism provided for in ERC-7265 should operate with a minimal rate of errors. The analysis showed that daily liquidity drawdown in smart contracts simply does not reach 25-40% unless we are talking about a hack.<\/p>\n

ERC-7265 is a proposal open for community discussion and comment. After that it could be considered by the Ethereum core developers team for potential inclusion in some future network upgrade.<\/p>\n

As a reminder, in the first half of 2023 the crypto industry lost around $655.6 million<\/a> in hacks and fraud.<\/p>\n","protected":false},"excerpt":{"rendered":"

A group of programmers from the Ethereum community proposed a new standard ERC-7265: Circuit Breaker to enhance the security of DeFi protocols.<\/p>\n","protected":false},"author":1,"featured_media":81219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,46],"class_list":["post-81218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-ethereum"],"aioseo_notices":[],"amp_enabled":true,"views":"32","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81218","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=81218"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81218\/revisions"}],"predecessor-version":[{"id":81220,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/81218\/revisions\/81220"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/81219"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=81218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=81218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=81218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}