DeFi bridges in turmoil – The ecosystem of decentralized finance (DeFi) evolved into a multi-chain ecosystem. Faced with this evolution, developers had to find ways to move funds between blockchains. Here’s how the bridges or bridges, linking various blockchains. Unfortunately, these are points of central vulnerabilityplagued by hacks.
Cross-chain bridge: the nightmare of DeFi
Since the end of 2020, many so-called bridge protocols have emerged. They have a simple mission: allow the exchange of funds between various blockchains.
While essential to the proper functioning of DeFi, they face significant security concerns.
Thus, according to a report published by Coin operated terminal, DeFi bridge attacks account for approximately 50% of attacks since September 2020.
In practice, almost $ 2.5 billion was stolen in attacks on DeFi bridges. In second place, well behind the bridges, we find the hacks of the Lending protocol, with 718 million dollars stolen.
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Due to their architecture, DeFi bridges are filled with liquid. Therefore, attacks that target them more often than not result in colossal losses.
Thereby, of the top 6 DeFi hacks, 5 targeted cross bridges.
Last July, the The Ronin Network bridge connected to the Axie Infinity game has been attacked. With $ 624 million stolen, this makes this attack the largest DeFi hack to date.
This hack is closely followed by the attack on the PolyNetwork point which resulted in the loss of 611 million dollars. Fortunately, the negotiations with the striker led to the return of almost all the funds.
More recently, it was the turn of BSC Token Hub is the target of an attack. As part of this case, the attacker managed to steal the equivalent of $ 586 million.
Among the most impressive hacks aimed at a bridge we can also mention the attacks on the bridge wormhole And Nomad Bridge which resulted in the loss of 326 and 190 million dollars respectively.
Vitalik Buterin’s scenario becomes clearer
Last January, when DeFi bridges weren’t such a phenomenon yet, Vitalik Buterin, the co-founder of Ethereum, was already warning of their lack of security.
He had already identified a major problem, namely the systemic risk of these bridges. In fact, many bridges are implemented on more than a dozen different blockchains.
Therefore, attacking the bridge on one of the chains and then withdrawing the stolen funds from a second chain could lead to systemic contagion to the entire ecosystem.
Unfortunately, these flaws could be mitigated by placing more emphasis on safety and control. A situation that delights, however cryptographic security experts who are seeing their salaries skyrocket in the face of huge demand from the ecosystem.
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