Warp Finance to use Chainlink price feeds to resist flash loan attacks
Warp Finance was in the news last month after it took to Twitter to expand on a “complex flash loan attack” it was a victim of. In the said incident, bad actors managed to borrow more than the collateral value, while also resulting in the loss of $7.7 million worth of stablecoins from the protocol.
2/ The exploiter was able to remove $7.7m of stablecoins. The team has a plan to recover approximately $5.5m that is still secured in the collateral vault. Upon successful recovery, these will be distributed to users who experienced a loss.
— warp.finance (@warpfinance) December 18, 2020
It should be noted, however, that Warp Finance was able to recover 73% of users’ funds. Recently, the project also revealed that its team has been in contact with multiple security experts since the incident, with their intention being to determine “the next best steps for ensuring a safe relaunch” of the protocol.
Having concluded that mission, Warp Finance today announced that it has decided to integrate Chainlink price feeds, a development the team believes will help secure the relaunch of the protocol.
In the said announcement, the protocol also stated that the cause of the exploit was an insecure, gameable price oracle. This is the reason why the Warp Finance team has dubbed Chainlink as the most robust oracle solution in the market, one that could help them protect their ecosystem.
“Our research and due diligence concluded that Chainlink was the most secure, reliable, and proven oracle solution, and will protect the Warp Finance ecosystem from similar flash loan-funded price oracle attacks moving forward.”
The Warp Finance team also lauded Chainlink for the oracle provider’s performance and successful operations during periods of extreme blockchain network congestion and unexpected hardforks in the past. In fact, the protocol also highlighted how Chainlink’s oracle nodes are security-reviewed and operated by professional DevOps teams. The announcement added,
“Backed by proven cryptoeconomics, high-quality data, and provably secure and reliable oracle infrastructure, Chainlink’s time-tested and battle-hardened Price Feeds will ensure the Warp Finance protocol is resistant to flash loan attacks.”
To date, the oracle provider has been integrated with more than 300 projects, with 29 such integrations taking place in October 2020 alone. This list includes 74 blockchains, 98 DeFi projects, 23 data providers, 44 nodes, and many more.