Defi Hacks and their Frequencies; Is There Hope for Slowing Down

Wormhole, a bridge between Solana and other blockchains, suffered an attack in early February 2022. In what was termed the second-largest Defi attack, the hackers stole about 120,000ETH, valued at over $320 million. Defi hacking is one of the biggest problems facing the Defi space, with projects losing millions and billions to such attacks. It is when criminals take advantage of smart contracts to steal funds. The most basic definition of hacking is when an individual looks for breaches in digital devices, exploiting the network’s weaknesses. The attackers may manipulate the smart contracts into committing errors that benefit them. In general, hacking takes different forms, thus giving the different types of Defi hacks. Let’s look at the types of these hacks and their frequency. Flashloan Attack One of the major types of Defi hacks is flashloan attacks, which mainly occur on Defi lending platforms. A flashloan is a type of uncollateralized loan in Defi lending, which must be paid in the same transaction as the borrow transaction. It requires no checks or limits. However, hackers may try to take advantage of these flashloan attacks to benefit. In such hacks, the attacker takes a flashloan but uses various tricks so that they make a short, quick and profitable transaction. As a type of hack, flashloan attacks involve multiple applications, hence are complex to carry out. Today, there are many instances of Flashloan attacks in th...