Flash loans have a $1.2 billion entry in DeFi's history books.
Per Decrypt, a study counted 72 flash loan attacks between 2020 and 2024 that drained $1.211 billion, out of $6.568 billion in total DeFi attack losses. A flash loan lets anyone borrow large sums with no collateral as long as it is repaid in the same transaction, a tool offered by lenders like $AAVE .
In my view, the loan is rarely the bug; it is the amplifier. Weak price oracles and logic errors are what get exploited, and flash loans just let attackers hit them with a lot of capital at once.
💬 Should DeFi protocols limit flash loans, or fix the oracles they exploit?
#DeFi #Security
Per Decrypt, a study counted 72 flash loan attacks between 2020 and 2024 that drained $1.211 billion, out of $6.568 billion in total DeFi attack losses. A flash loan lets anyone borrow large sums with no collateral as long as it is repaid in the same transaction, a tool offered by lenders like $AAVE .
In my view, the loan is rarely the bug; it is the amplifier. Weak price oracles and logic errors are what get exploited, and flash loans just let attackers hit them with a lot of capital at once.
💬 Should DeFi protocols limit flash loans, or fix the oracles they exploit?
#DeFi #Security
