Quanstamp’s new service to help curb the threats of flash loan attacks

Key takeaways

• Blockchain safety platform Quantstamp seeks to curb the threats of flash mortgage assaults with its new service. 

• The service may assist cut back the variety of protocols that get hacked.

Quanstamp to launch a brand new service

Blockchain safety platform Quantstamp has revealed that it desires to scale back the threats of flash mortgage assaults with its service service. 

The staff instructed CoinDesk that the service is designed to catch exploits earlier than they go off. The service, referred to as the Financial Exploit Evaluation, will detect frequent assault pathways utilized by hackers by way of automated tooling earlier than protocols get hacked.

The Financial Exploit Evaluation has already been launched in partnership with researchers from the College of Toronto.

DeFi protocols have misplaced an estimated $207 million value of tokens as a consequence of flash mortgage assaults throughout the first half of the yr. 

Flash loan attacks are when somebody exploits a sensible contract as a way to get a fast mortgage. This may be performed by profiting from a vulnerability within the code, or by convincing the contract’s proprietor to present them a mortgage.

Flash mortgage assaults can be utilized to empty the whole whole worth locked (TVL) of a DeFi protocol, making it fairly problematic for tasks within the crypto area. 

Martin Derka, head of latest initiatives at Quantstamp acknowledged that;

“DeFi has the potential to vary the worldwide monetary infrastructure for the higher, however its success requires preempting threats like flash mortgage assaults. We developed this software to offer DeFi protocols an additional layer of safety on high of audits. As DeFi evolves, safety measures must evolve with it. Providers like Financial Exploit Evaluation give us an edge in opposition to hackers.”

The staff revealed that its service is out there to each deployed and undeployed protocols.