OpenZeppelin monitors defi platform for security risks and notifies the platform
App called sentinels monitors projects for abnormal behaviour
BSC version to be launched next month
Decentralised Finance (Defi) has been the latest advancement of the Cryptocurrancy world with projects such as Yearn.Finance, Compound and AAVE leading the Defi storm on the Ethereum block chain.
Investing in Defi has had its risks as Yearn.Finance has suffered a number of high profile attacks the latest of which saw Yearn.Finance vault losing $US11 Million in locked assets.
The two main forms of detection are flash loans which compromise of large transactions and easily detected. A flash loan attack is what drained Yearn.Finance vaults. However, it wasn't detected until defi users who were monitoring the block chain notified Yearn.Finance on social media. If the Sentinal app had of been active at the time it would have notified the project of irregularities in the vault and prevented the attack.
The second weakness is price oracles which is the detection method used by Defi project to ensure prices across platforms are unified. A drop in price or a break in the Oracle can cause a weakness in a project leaving it open to an attack.
The project is also currently in talks with mempool native on blocknative. Mempool holds a list of pending transactions awaiting confirmation and if am attack has been undertaken OpenZeppelin hopes it can integrate its service to freeze the transaction(s) and reverse the attack.
At current the service is only offered on the Ethereum network and will roll out BSC support at the end of the month.
Compound, AAVE and Yearn.Finance are amongst early adopters of the auditing security service and the sector welcomes such a move to strengthen trust in a trustless industry. This implementation of the project will be certain to drive further investment to a growing sector.
