DeFi Exploits: Trends, Patterns, and Lessons Learnt
Research series
Although DeFi has seen explosive growth, over $4.2B has been stolen over the past two years due to lacking security practices. This article explores trends and patterns behind these exploits, including the most common root causes. We explore steps that the DeFi ecosystem is taking to mitigate these risks, especially at scale. Lastly, we take a look at where the stolen money goes after an exploit, and how this is affected by the recent OFAC sanctions on money-mixer protocol Tornado Cash…
Great write up. In terms of what to do about it, I also would point out real-time monitoring of on-chain activity (e.g. through the Forta Network) and incident response processes are required.
Great article, I hope this sheds a bit more light on how critical encryption at rest is for security.