How Flash Loans Work in DeFi
Decentralized Finance (DeFi) has introduced a range of innovative financial instruments that redefine how we think about borrowing, lending, and asset management. Among these innovations, flash loans stand out as one of the most fascinating and controversial developments. They are powerful, instant, and accessible to anyone with technical knowledge. But they also come with unique risks and […]
A Deep Dive into DeFi’s Flash Loan Attacks
DeFi’s open and transparent services have transformed finance and introduced risks like flash loan attacks, which threaten this growing industry. While they are legitimate financial instruments, flash loans have been exploited in ways that expose vulnerabilities in DeFi protocols. This article discusses how flash loans work, the nature of flash loan attacks, notable incidents, and […]
Crypto Trading Bot Takes Out $200M Flash Loan
A crypto trading bot programmed to execute arbitrage trades made numerous complex movements within the Ethereum blockchain, including taking out a $200 million flash loan to earn a meager $3.24. On June 14, Arkham Intelligence, a blockchain analysis firm, provided a synopsis of the bot’s movements. According to the company, the transaction was carried out […]
Defrost Finance reveals refund plans following hack
Decentralized leverage-trading platform Defrost Finance plans to refund the cash to their legitimate owners after retrieving the funds lost in a recent flash loan exploit worth about $12M. Defrost said in a Medium post that it would soon be returning the assets to its original owner and will be using a certain procedure. All Ether […]
Flash loan attack causes DeFi protocol token NFD to crash by 99%
Flash loans allow users to borrow large amounts of assets without upfront collateral; miscreants use them to exploit DeFi protocols. On September 8, a series of flash loan assaults targeted the decentralized finance (DeFi) protocol New Free DAO, causing a reported loss of $1.25 million. In the wake of the attack, the native token’s price […]