Ethereum is once again at the forefront of innovation within the rapidly expanding realm of decentralized finance (DeFi). A group of passionate Ethereum community members has recently put forth a groundbreaking proposal aimed at bolstering the security of DeFi protocols.
Introducing ERC 7265, a new standard that promises to revolutionize the way DeFi platforms handle potential hacks and safeguard user funds. The proposed ERC 7265 standard introduces a vital component, which serves as a fail-safe mechanism integrated into the smart contracts of DeFi protocols.
This “circuit breaker” would act as a safeguard, enabling developers to swiftly halt any token transfers before they leave the contracts in the event of a security breach or suspicious activity.
1/ Announcing ERC 7265: Circuit Breaker
We are fixing the biggest problem with DeFi Security – lack of response time to mitigate hacks.
Built by @Diyahir @tcb_00 @real_philogyhttps://t.co/4KQDYEK2H7
— Meir Bank (@MeirBank) July 3, 2023
ERC 7265 As ‘Circuit Breaker’ For Ethereum Network
In the wake of the recent Poly Network hack, a team of diligent researchers and developers has taken the initiative to address the security vulnerabilities plaguing the DeFi space.
Inspired by the exploit’s root cause, which was the lack of a prompt response mechanism, they have introduced ERC 7265 as a proposed standard aimed at fortifying DeFi protocols against such intrusions.
The developers behind this proposal, including Diyahir Campos and Meir Bank, have made their case on Github. They describe ERC 7265 as a “Circuit Breaker” solution capable of triggering a system-wide pause on outgoing transactions if certain predetermined thresholds are breached.
By implementing this protocol-wide halt on outflows, DeFi platforms can significantly minimize the potential impact of hacks and fraudulent activities, allowing for timely intervention and protection of user funds.
Chart: The Block Crypto Data
The release of ERC 7265 comes at a crucial time, as the DeFi ecosystem has witnessed a surge in hacking incidents. According to The Block’s Data Dashboard, attackers have managed to steal a staggering $3 billion from DeFi protocols thus far.
This alarming trend underscores the urgent need for robust security measures in the DeFi space, making the proposed ERC 7265 standard a timely and significant development in the pursuit of safeguarding users’ assets and fostering trust in decentralized finance.
Poly Network Attacker Gains $10 Million Profit
On July 2, Poly Network fell victim to a devastating hack, resulting in the attacker making off with an astonishing $10 million in ill-gotten gains. The breach exposed vulnerabilities within the platform, allowing the hacker to exploit weaknesses and collect substantial profits from the attack.
🚨MistTrack Alert Update🚨
We have discovered two new stolen transactions of over 3 million USDC and over 2.6 million USDT.
The attacker swapped $USDC to 1,557.36 $ETH and stayed at the address (0x2f6c…7b82), and swapped $USDT to 1,371.64 $ETH and stayed at the address… https://t.co/KdzTe2uhl1 pic.twitter.com/D1HW8Zh7D4
— MistTrack🕵️ (@MistTrack_io) July 3, 2023
As the situation unfolds, crypto security firm SlowMist has taken charge of monitoring the hacker’s movements closely. They are actively tracking the funds and providing updates through their tweet thread, shedding light on the ongoing developments in an effort to protect users and the wider cryptocurrency community.
ETHUSD trading at $1,935 on the daily chart: TradingView.com
Unfortunately, this is not the first time Poly Network has faced such a severe security breach. In August 2021, the platform endured a previous attack that resulted in hackers absconding with a staggering $600 million worth of various cryptocurrencies.
Featured image from Dollero Technology