DeFi bridges: the weak link in the crypto fortress

DeFi bridges in turmoil – Ecosystem i decentralized finance (DeFi) evolved into a multichain ecosystem. Faced with this evolution, developers had to find ways to move funds between blockchains. That’s how it is bridge or bridges, connecting different blocks. Unfortunately, these are points essential vulnerabilityplagued by hacks.

Chain Bridge: The DeFi Nightmare

Since the end of 2020, many so-called bridge protocols have appeared. They have a simple mission: allow the exchange of funds between different blockchains.

Although essential to the proper functioning of DeFi, they face significant security issues.

Thus, according to a report published by Token Terminal, DeFi bridge attacks account for around 50% of attacks as of September 2020.

DeFi attack studies and prevalence of DeFi bridge attacks.

In practice, almost $2.5 billion was stolen in attacks targeting DeFi bridges. In second place, far behind the bridges, we find the lending protocol hacks, with $718 million stolen.

>> Play safe, sign up to FTX crypto exchanges reference (commercial link) <

Unforgivable attacks

Due to their architecture, DeFi bridges are fluid. Therefore, attacks targeting them most often result in colossal casualties.

In this way, of the top 6 DeFi hacks, 5 targeted cross-chain bridges.

Last July, The Ronin Network bridge connected to the game Axie Infinity was attacked. With $624 million stolen, this makes this attack the largest DeFi hack to date.

This hack is closely followed by the PolyNetwork point attack that resulted in the loss of $611 million. Fortunately, negotiations with the attacker led to the return of almost all funds.

Recently, it was his turn BSC Token Hub is the target of an attack. In this case, the attacker managed to steal an amount equal to 586 million dollars.

Among the most impressive hacks targeting a bridge we can also mention bridge attacks wormhole AND Nomad Bridge which respectively resulted in losses of 326 and 190 million dollars.

Vitalik Buterin’s scenario becomes clearer

Last January, when DeFi bridges were not yet such a phenomenon, Vitalik Buterin, the co-founder of Ethereum, was already warning about their lack of security.

He had already identified a major problem, namely the systemic risk of these bridges. Indeed, many bridges are deployed on more than a dozen different blockchains.

Therefore, attacking the bridge on one of the chains and then withdrawing the stolen funds to a second chain can lead to systemic contagion throughout the ecosystem.

Unfortunately, these drawbacks can be mitigated by placing more emphasis on security and auditing. A satisfying situation nonetheless Crypto security experts who are seeing their salaries skyrocket in the face of huge demand from the ecosystem.

Hack Me I’m Famous! Are you afraid to cross the bridge? Rely with confidence on a known player in the ecosystem. Register without delay on the FTX reference platform. In addition, you benefit from a return of up to 8% on all your crypto assets (trade link, see terms on the official website).

Leave a Comment