Topic: Is DeFi really revolutionary? One attack after another. (Read 230 times)

We all know that a few months back we had Flash loan attacks costing millions by exploiting bZx protocol. Now, looks like a DeFi protocol, dForce has lost over 99 percent ($25 Million) of its assets in an attack Saturday night.
More info: https://www.coindesk.com/attacker-drains-decentralized-protocol-dforce-of-25m-in-weekend-attack
So is DeFi really a revolutionary idea as some claim?

Defi is certainly revolutionary--snip--
Plus no matter how hard you try, sometimes a small issue is left which no one sees.

For that hacking itself needs to be demotivated like via combined efforts by all exchanges to blacklist addresses as soon as they are found to be of hackers.

Very true, so far over two Defi projects are already attacked by hackers and scammers, this mean that Defi is that different to other projects in crypto world in terms of security, for now it's just like others until further notice

We know that this is a fairly new thing, but at least it has more advantages than conventional banks. DeFi is more transparent, flexible, with global reach.
And it is not a small fund. With failures and ineffective systems, it will be a good lesson for further development.
https://t.me/ico_analytic/1806

I think it's the fault of the one who is handling it. DeFi has potential to grow big but the team just neglects the possible risk during its early stage. They didn't fix the problem in the first attack and now they suffered huge lost this attack. $25,000,000 is not a joke to its team and its users. I wonder how they will come back from this?

Idea might be good but that doesn't decides how a project prosper, it is its team.

We all know that a few months back we had Flash loan attacks costing millions by exploiting bZx protocol. Now, looks like a DeFi protocol, dForce has lost over 99 percent ($25 Million) of its assets in an attack Saturday night.
More info: https://www.coindesk.com/attacker-drains-decentralized-protocol-dforce-of-25m-in-weekend-attack
So is DeFi really a revolutionary idea as some claim?

We all know that a few months back we had Flash loan attacks costing millions by exploiting bZx protocol. Now, looks like a DeFi protocol, dForce has lost over 99 percent ($25 Million) of its assets in an attack Saturday night.
More info: https://www.coindesk.com/attacker-drains-decentralized-protocol-dforce-of-25m-in-weekend-attack
So is DeFi really a revolutionary idea as some claim?

As we grow towards a universal platform and solving issues, Defi would be one of the most secure way to handle our finance, fast, efficient and secure.

--snip--security like cold wallet storage and multi-sig function on the parts of the team members.

The decentralized Finance technology are new and varied. That's the reason why many of them are attached. It's also due to the lack of safety measure implemented by those DEFis.
As we grow towards a universal platform and solving issues, Defi would be one of the most secure way to handle our finance, fast, efficient and secure.

The decentralized Finance technology are new and varied. That's the reason why many of them are attached. It's also due to the lack of safety measure implemented by those DEFis.
As we grow towards a universal platform and solving issues, Defi would be one of the most secure way to handle our finance, fast, efficient and secure.

The decentralized Finance technology are new and varied. That's the reason why many of them are attached. It's also due to the lack of safety measure implemented by those DEFis.
As we grow towards a universal platform and solving issues, Defi would be one of the most secure way to handle our finance, fast, efficient and secure.

Multicoin Capital-backed DeFi protocol dForce loses ~$25M total locked value in an exploit

Celia Wan
The Block ● April 19, 2020, 4:36 AM UTC

* dForce, a Multicoin Capital-backed Chinese decentralized finance (DeFi) protocol, has been exploited.

* On the dForce Telegram channel, CEO Mindao Yang said the team is still investigating the issue and advised users not to supply any asset into Lendf.Me now. The team also confirmed the Chinese crypto news site ChainNews that it Lendf.Me was attacked at block height 9,899,681.

* Although details of the exploit were yet to be revealed, it is worth noting that in January,
Lendf.Me integrated with imBTC , an Ethereum token pegged to BTC. Earlier today, a liquidity pool for imBTC on decentralized exchange Uniswap was exploited, resulting in a loss of around $300,000 worth of tokens.
The imBTC attack took advantage of the fact that imBTC uses ERC 777 standard, which allows the hacker to continuously call the Uniswap smart contract to withdraw funds before the external balance could be updated.
On Twitter, some users are speculating that Lendf.Me experienced a similar attack to the imToken one, as transaction records show that the hacker repetitively called Lendf.Me's withdrawal function to take out imBTC that was supplied to the lending protocol by the hacker in the first place.
This scheme, however, was not new. In 2016, the famous DAO hack used a similar mechanism that led to $60 million Ether being stolen. A ConsenSys audit of Uniswap last year also discussed this vulnerability in depth.

* On April 15, dForce just announced a $1.5 million funding round led by Multicoin Capital, with participation from Huobi Capital and China Merchants Bank International (CMBI), the investment arm of one of the biggest banks in China.

It seems hackers have identified a loop hole in defi protocol and that's how the hacking will continue. Something needs to be done to stop this early.