Uniswap

MakerDAO Lending Service Attacked …

Navigation

MakerDAO Review: Complete MKR Overview

MakerDAO Lending Service Attacked ...

MakerDAO lending service attacked with flash credit
CONTENT

  • A group of cryptographers managed to gain access to MakerDAO proprietary oracles with flash credit

  • The project developers urged large holders of MKR tokens to withdraw assets from cryptocurrency lending platforms

  • Attacks using flash credits have become more frequent in the cryptocurrency market

International consortium of news organizations developing transparency standards.

A group of enthusiasts used flash credit to vote in their favor to gain access to the MakerDAO pricing oracle

DeFi Crypto TeamDecentralized Finance (DeFi) is a blockchain-based financial service that offers users access to an open, efficient and … More BProtocol attacked the MakerDAO protocol using flash credit to manipulate governance voting project. MakerDAO developers reported this on the official forum.

By creating a vote to govern the MakerDAO, a group of cryptographers were able to influence the vote in their favor with a flash loan obtained from Aave’s decentralized finance (DeFi) platform. Flash loans are the most popular method for arbitrage transactions, as they do not require collateral due to the coverage of the issued loan even before the end of the transaction..

MakerDAO Lending Service Attacked ...

Join our telegram channel to keep abreast of the main trends in the crypto market.

According to MakerDAO, the vote initiated by BProtocol was to give the team access to the MakerDAO pricing oracle. With the loan, the enthusiasts were able to get the majority they needed to access the pricing oracle. MakerDAO emphasized that BProtocol’s actions were not malicious, as the team immediately recognized the attack in order to find a flaw in the DeFi protocol..

Improper use

According to MakerDAO’s official announcement, the cryptographic team was able to obtain enough cryptocurrency collateral through several transactions to borrow $ 7 million in MKR tokens to close the vote in their favor.

“Their [BProtocol] actions are a practical example for the community that flash credits can influence system management and underscore the need to actively monitor MKR market liquidity,” wrote one of the MakerDAO developers under the alias LongForWisdom.

Thus, MakerDAO concluded that flash credits are not so much useful in arbitration as they pose a threat to decentralized protocols with autonomous control systems..

Learn how to trade in the cryptocurrency market with BeInCrypto partner – the StormGain cryptocurrency exchange

Pyramid attack

In practice, the attack on the protocol looked like this:

    MakerDAO Lending Service Attacked ...
  • On October 26 at 20:37 Moscow time, the BProtocol group bought Wrapped Ethereum on the dYdX platform using a flash loan for $ 20 million (~ 50 thousand ETH tokens);
  • Then the amount is deposited under the token. As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More AAVE for a loan of $ 7 million in MKR tokens (~ 13,000 MKR);
  • Received MKR tokens are pledged for voting;
  • Actual voting with 13k MKR tokens.

According to the MakerDAO developers, they have already taken steps to prevent such incidents by disabling some components in the ecosystem that can affect the performance of oracles..

The developers also announced that they intend to contact large holders of MKR tokens on the Aave, Balancer and Uniswap sites in order to convince them to withdraw tokens until measures are in place to protect against this kind of attacks..

It is noteworthy that this is not the first attack using credit funds. Earlier, the editorial staff of BeInCrypto reported that unknown persons were able to steal more than $ 23 million from the Harvest Finance DeFi protocol using a large flash loan. Harvest Finance developers said attackers were able to manipulate prices multiple times with credit, draining the cash depot.

What do you think? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

Similar articles

  • USDC has become the most popular collateral asset on MakerDAO

    USDC Becomes Most Popular Collateralized Asset on MakerDAO CONTENTS USDC Transactions Up 1000% DeFi Market Up 75% Since June 2020…

  • Yield Protocol launches lending…

    Yield Protocol Launches Fixed Rate Lending CONTENTS Yield Protocol Launches Fixed Period and Rate Loans In Phase…

  • BNT Token Soared 22% When…

    BNT token skyrocketed 22% when Bancor announced liquidity mining in CONTENTS Bancor developers unveiled their own mining counterpart…

  • ETH 2.0 staking service…

    ETH 2.0 staking service in Kraken has collected more than 100 thousand ETH CONTENT 8% of all Ethereum coins locked in ETH 2.0 are stored on the Kraken exchange…

Similar articles

  • ETH 2.0 staking service…

    ETH 2.0 staking service in Kraken has collected more than 100 thousand ETH CONTENT 8% of all Ethereum coins locked in ETH 2.0 are stored on the Kraken exchange…

  • Yield Protocol launches lending…

    Yield Protocol Launches Fixed Rate Lending CONTENTS Yield Protocol Launches Fixed Period and Rate Loans In Phase…

  • USDC has become the most popular collateral asset on MakerDAO

    USDC Becomes Most Popular Collateralized Asset on MakerDAO CONTENTS USDC Transactions Up 1000% DeFi Market Up 75% Since June 2020…

  • IOTA To Renew Mainnet Next Week

    IOTA will be updating the main network next week CONTENTS Information about the upcoming upgrade that should improve the bandwidth…