An over-borrowing vulnerability is a security flaw in a lending protocol or smart contract that allows a malicious actor to borrow more assets than their collateral should permit. This typically results from faulty collateral valuation, reentrancy attacks, or logic errors in the borrowing mechanism. Exploiting this vulnerability can lead to significant losses for the protocol and its liquidity providers. It poses a direct threat to protocol solvency.
Context
Over-borrowing vulnerabilities represent a severe risk within decentralized finance lending platforms, as they can directly compromise the solvency of the protocol. Security audits and rigorous testing are essential to identify and mitigate these flaws before deployment. News reports often detail instances where such vulnerabilities have been exploited, leading to substantial financial damages and highlighting the continuous need for robust smart contract security.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
