Expert Shows How DeFi Protocols Are Hacked

Kofi Kufuor, a partner at crypto investing behemoth 1confirmation, presents an in-depth examination of crypto protocol assaults. Kofi Kufuor offered his own taxonomy of attacks on decentralized finance (DeFi) protocols and identified key flaws to which this volatile sector is vulnerable.

All assaults that resulted in money being stolen from crypto protocols, according to his post, may be classified into four groups based on the vulnerability stack.

Having said that, all recent assaults have been directed at the ecosystem, protocol, smart contract language, or infrastructure. Infrastructure attacks target consensus flaws, Internet systems hidden behind DeFis, private keys, and so on.

Smart contract language attacks take advantage of design faults in programming languages used to create smart contracts. Protocol logic assaults are carried out in the context of poor business logic and tokenomical flaws.

Finally, ecosystem attacks target the interconnections between several DeFi protocols: malefactors borrow money from one protocol and inject it into the liquidity pools of another DeFi to launch an attack.

Ecosystem assaults are the most common: they account for more than 41% of all DeFi hacks. At the same time, excluding the three most severe hacks (Ronin Bridge, Poly Network, and BNB Chain Bridge), infrastructure assaults resulted in the most damage.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News