Ethereum plans to thwart DeFi hacks with this proposal, here’s how
July 6, 2023
By Victor Olanrewaju
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A section of the Ethereum community proposed the ERC-7265 standard to reduce DeFi exposure to exploits.
The approach has raised concerns about certain issues that DeFi is against.
As the leading project in Decentralized Finance (DeFi), the Ethereum [ETH] community has taken it upon itself to curb the incessant attacks in the ecosystem. Dubbed as the ERC-7265 or “circuit breaker”, the proposal which appeared on 3 July, has seen a lot of code commits between 4 and 5 July.
Time to halt the exploits
Pseudonymous developer Diyahir, who led the conversation, noted that the ERC-7265 standard would help with a temporary halt on outflows when a breach is detected.
And since it planned on building a circuit breaker structure, then smart contracts can delay settlements while cooling down attempted withdrawals. The proposal mentioned,
“This circuit breaker does not assume the structure of the underlying protocol, and mainly serves as a pass-through vehicle for token outflows.”
Over the last 365 days, several DeFi projects have experienced numerous exploits and flash loan attacks. And as of this writing, it amounted to $2.85 billion. This has prompted questions about the security of storing funds there or transacting via the networks.
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