Logic bugs in lending protocols
🧐When delving into the intricacies of lending and borrowing within DeFi protocols, it becomes essential to explore the potential vulnerabilities that could arise. Understanding how bugs can propagate from the software level to impact the very business logic is paramount.
❗️The process of establishing and finalizing a bond contract involves numerous critical steps. Within this context, it’s imperative to meticulously examine various avenues of attack that could be exploited. By recognizing these potential attack vectors, we can fortify the protocol’s resilience and ensure a secure financial ecosystem for all users involved.
💥Ways lenders lose out:
• Uncovering glitches that trim down principal amounts (Even to Zero!) – no repayments required.
• A critical eye on timelines: preventing unapproved postponement of loan deadlines and payments.
💥Ways borrowers lose out:
• Unforeseen Disruption: Repaying principal debt brings profit.
• Defending Collateral Value: Devious manipulation can erode the value of your collateral through oracle manipulations.
🔒Don’t Fall Victim! Elevate your borrowing experience by understanding these potential hurdles and fortifying your financial journey.
Leave a Reply