DeFi bridges in turmoil – ecosystem for Decentralized Finance (DeFi) It has evolved into a multi-chain ecosystem. Faced with this development, developers have had to find ways to move funds between blockchains. This is how he uses it Bridges or overpasses, linking different blockchains. Unfortunately, these are points Primary weaknessplagued by piracy.
Cross-Chain Bridge: A DeFi Nightmare
Since the end of 2020, many so-called bridge protocols have appeared. They have a simple mission: It allows the exchange of funds between different blockchains.
Although it is necessary for the proper functioning of DeFi, they face significant security issues.
Thus, according to Report posted by token terminalAnd the DeFi bridge attacks account for about 50% of attacks since September 2020.
In practice, approx $2.5 billion was stolen in attacks targeting DeFi bridges. In second place, behind bridges, we find the lending protocol breaches, with $718 million stolen.
Because of their architecture, DeFi bridges are fluid-filled. Therefore, attacks aimed at them most often lead to heavy losses.
Thus, Of the top 6 DeFi hacks, 5 target cross-chain bridges.
This past July, it was The Ronin Network Bridge linked to the game Axie Infinity has been attacked. With $624 million stolen, this attack makes it the largest DeFi hack to date.
This hack follows closely PolyNetwork point attack that resulted in a loss of $611 million. Fortunately, negotiations with the attacker resulted in the return of almost all the money.
Recently, it was the turn of The BSC Token Hub being the target of the attack. As part of the case, the attacker managed to steal the equivalent of $586 million.
Among the most impressive bridge hacks, we can also mention bridge attacks wormy And the Bedouin Bridge This resulted in a loss of $326 million and $190 million, respectively.
Vitalik Buterin’s scenario becomes clearer
This past January, when DeFi bridges were not yet such a phenomenon, Ethereum co-founder Vitalik Buterin had already warned about their lack of security.
He has already identified a major problem, which is the systemic risks of these bridges. In fact, many of the bridges are deployed on more than a dozen different blockchains.
Therefore, attacking the bridge on one chain and then siphoning the stolen funds onto a second chain could lead to a systemic infection of the entire ecosystem.
Unfortunately, these shortcomings can be mitigated by a greater focus on security and auditing. But the situation that pleases Crypto security experts who are seeing their salaries skyrocket in the face of massive demand from the ecosystem.
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