The rising threats of flash loan attacks in the decentralized finance (DeFi) space have caught the attention of Quantstamp, a leading blockchain security platform. In an effort to stem this unsettling trend, the company has rolled out a new service called Economic Exploit Analysis, developed in partnership with researchers from the University of Toronto.
Economic Exploit Analysis is designed to automatically detect common pathways exploiters use for flash loan attacks before they impact protocols. The service aims to preempt attacks that can drain the entire total value locked (TVL) in a DeFi protocol, and which often go undetected by standard audits. An estimated $207 million in tokens were stolen through flash loan attacks in just the first half of 2023.
Martin Derka, the head of new initiatives at Quantstamp, emphasizes the need for evolving security measures in DeFi. "DeFi has the potential to change the global financial infrastructure for the better, but its success requires preempting threats like flash loan attacks.
While Economic Exploit Analysis can be a powerful tool, it's designed to supplement rather than replace existing security measures. "We developed this tool to provide DeFi protocols an extra layer of security on top of audits," added Derka.
The tool’s search process is automated; however, manual guidance and protocol-specific adaptations are often required for effective implementation.
With the rapid growth and increasing complexity of DeFi platforms, the security landscape must evolve just as swiftly. Quantstamp’s Economic Exploit Analysis service is a step in the right direction, promising to provide an extra layer of security that could save millions in potential losses. By catching vulnerabilities early, Quantstamp aims to make DeFi a safer place for everyone involved.
