• The Ethereum [ETH] community proposed the ERC-7265 standard to reduce DeFi exposure to exploits.
• ERC-7265 or “circuit breaker” is designed to temporarily halt on outflows when a breach is detected.
• Several DeFi projects have experienced numerous exploits and flash loan attacks in the past 365 days amounting to $2.85 billion.
Ethereum Proposal To Thwart DeFi Hacks
The Ethereum (ETH) community has proposed a new standard, ERC-7265, also known as “circuit breaker” in order to reduce Decentralized Finance (DeFi) exposure to hacks and exploits. This proposal aims to temporarily halt any outflows when a breach is detected as well as create a mechanism that can limit the speed at which funds can be withdrawn from smart contracts in an effort to prevent large scale theft.
Implications Of The Proposal
This proposal has raised concerns due to certain issues it may raise against DeFi protocols. Pseudonymous developer Diyahir noted that this could help mitigate the impact of hacks, however Nikolay Denisenko, chief technical officer at Neobank BrightyApp mentioned that there is still risk of centralization which should be addressed in order for this standard not be misused.
Amount Lost To Hacks
Over the last 365 days, several DeFi projects have experienced numerous exploits and flash loan attacks resulting in billions of dollars lost so far with cumulative losses amounting up to $2.85 billion at press time.
Daily Transactions On Ethereum Network
At present DefILlama revealed that daily transactions on the network had crossed 900,000 suggesting that market participants still considered the platform secure enough for their transactions despite these breaches and thefts occurring over time .
Conclusion
Despite these unfortunate incidents occurring over time, Ethereum has maintained relatively good numbers with regards to daily transactions which suggests that users are still confident about using its platform for their financial needs as evidenced by DefILlama’s report on 900,000 daily transactions done on its network
