#Did_You_Know:
📍 In the crypto world, some attacks can steal millions of dollars in just seconds without the need for any capital.
✅️ This is known as the "flash loan attack," one of the most dangerous threats facing decentralized financial protocols.
🛜 How the attack works:
✔️ Some decentralized finance platforms offer the feature of flash loans, allowing users to borrow huge amounts without any collateral, provided they are repaid in the same transaction.
✔️ And here comes the trick! Hackers use these loans to execute complex trades in fractions of a second, exploiting vulnerabilities in the price determination mechanism within the protocols.
🛜 The steps followed by the hacker:
✔️ Requests a flash loan for a huge amount from one of the protocols.
✔️ Exploits a vulnerability in the pricing mechanism, inflating or deflating prices using massive trades.
✔️ Sells assets at an inflated price or artificially buys at low prices, achieving massive profits.
✔️ Repays the loan immediately during the same transaction, leaving the protocol suffering losses.
🔻 The result:
✅ Some projects experienced total collapse due to these attacks.
✅ Investors lost their money without prior warning.
✅ Developers had to look for solutions like manipulation-resistant price oracles and restrictions on the size of flash loans to protect financial systems.
🔵 How to protect against these attacks:
✔️ Use external price oracles to update prices accurately and reduce the chance of manipulation.
✔️ Restricting the size of flash loans to reduce potential damage.
✔️ Analyzing and updating smart contracts to detect any vulnerabilities #SparkBinanceHODLerAirdrop #越南加密政策 #BombieBinanceTGE #IsraelIranConflict #MetaplanetBTCPurchase $BTC