Chainlink CEO Expects Flash Attacks to Ramp Up

Chainlink CEO Expects Flash Attacks to Ramp Up

By Abhimanyu Krishnan | News | 25 Nov 2020

Chainlink (LINK) co-founder Sergey Nazarov believes that the DeFi market will experience more flash loan attacks going forward. Nazarov made the statement during a Decrypt Daily podcast on Nov. 24.

  • Nazarov said that the main pain point with respect to flash loan attacks is the use of centralized price data providers, which DeFi protocols have turned to for the sake of convenience and speedy development
  • He notes that the attacks only require only a certain amount of money but little technical knowledge to execute
  • The DeFi market has experienced several such attacks in recent months, with attackers manipulating price data, in conjunction with smart contract vulnerabilities, to siphon funds from protocols
  • The most recent victim of a flash loan attack is Pickle Finance, which lost $20 million on Nov .23, second only in terms of funds lost to Harvest Finance, which lost $24 million¬†
  • Nazrov believes that attacks in the future will be more complex, involving several price feeds -- and that Chainlink is building a system that prevents exactly this
  • Chainlink provides decentralized price oracles which provides applications with more accurate and reliable price feeds, which many suggest would help counter flash loan attack

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Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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