After five attacks and millions of dollars lost due to an exploit, this week we’re diving deep into the mechanism behind what made this possible: Flash Loans. Some called it a magnificent attack, some called it art. But there are other important questions to be asked: were the flash loan attack prevention, fake token attack prevention, re-entrance attack prevention claims unwarranted? How can an audited protocol fall victim to this attack?
This is The Defiant x Harmony, a weekly series brought to you by Harmony Protocol’s Creative Director, Robin Schmidt, and Camila Russo, the founder of The Defiant, to explore DeFi’s most important stories and demystify this exciting emerging financial space.
0:00 November 17th, 2020
1:18 5 attacks
1:25 Cheese Bank
1:48 Akropolis
2:12 Harvest
2:54 Value Protocol
3:11 Origin Protocol
4:02 What is a Flash Loan?
7:48 Anatomy of a Flash Loan Attack
10:18 Re-Entrance
11:33 A Magnificent Attack
15:15 Bounty
16:49 Hacker’s Note
18:06 The Fallout
