Definition ∞ An over-collateralization attack refers to a theoretical or actual exploit where an attacker manipulates a decentralized finance protocol by supplying an excessive amount of a specific asset as collateral. The goal is to gain disproportionate control or influence over the protocol’s governance or economic mechanisms. This manipulation can distort market prices or voting outcomes within the system. Such attacks leverage protocol design flaws related to collateral valuation or governance weight.
Context ∞ While less common than other exploits, the risk of over-collateralization attacks is a topic of ongoing research and security auditing in decentralized finance. News reports on protocol vulnerabilities sometimes reference these scenarios, particularly when discussing governance token economics or lending pool designs. Developers continuously refine smart contract logic to prevent such manipulative tactics and maintain system integrity.
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