Flash Loan Attack Vector → News → Incrypthos News

Flash Loan Attack Vector

Definition ∞ A flash loan attack vector is a method of exploiting vulnerabilities in decentralized finance (DeFi) protocols by utilizing uncollateralized flash loans to manipulate asset prices or protocol logic. Attackers borrow large sums for a very short period, execute a series of transactions, and repay the loan within a single block. This exploit leverages immediate liquidity without requiring personal capital.
Context ∞ Reports on flash loan attack vectors are common in crypto news, highlighting security risks within the DeFi sector and the ongoing need for robust smart contract auditing. These incidents inform the community about potential systemic weaknesses and drive improvements in protocol security measures.

A faceted, transparent crystalline structure encases a smooth, vibrant blue form, symbolizing a robust blockchain architecture. This DLT framework provides auditability and verifiable transactions, securely encapsulating a core digital asset or a liquidity pool. The geometric facets represent cryptographic primitives and smart contract logic, ensuring data integrity and the value proposition of the native token within a decentralized finance protocol. This design highlights the secure interoperability of the ecosystem.

→Rounding Error Flaw

→Multi-Chain Vulnerability

→Flash Loan Attack Vector

Balancer Protocol Drained $128 Million Exploiting Smart Contract Rounding Error

A critical rounding error in the batchSwap upscale logic enabled multi-chain liquidity draining, exposing systemic risk in complex DeFi pool invariants.