A decentralized finance (DeFi) “circuit breaker” could have prevented billions of dollars worth of crypto from being stolen from DeFi protocols in 2022, according to the developer of the newly published ERC-7265 proposal. A new Ethereum request for comment (ERC) was published on GitHub on July 3. In it, the lead developer Diyahir Campos proposed a standard for a DeFi “circuit breaker.” It essentially aims to set a standard for a smart contract that can halt suspiciously large token outflows from a DeFi protocol. Last year was the single biggest year for crypto hacks, with at least $3.1 billion stolen from DeFi protocols — and cross-chain bridges accounted for 65% of that. Speaking to Cointelegraph, Campos said circuit breakers could have prevented billions in losses. “The ones that weren’t rugs, you could probably save 70% of the money […] with minimal impact to users.” Campos revealed he was one of the many that lost funds in the $195 million Euler Finance attack in March, which led to contagion impacting 11 other protocols. “Actually, I was one of the depositors in the Euler hack,” he said.
Full story : ETH DeFi ‘circuit breaker’ could cut hack losses by 70% — Developer.
