A group of Ethereum community members have proposed a new standard to improve the security of decentralized finance (DeFi) protocols.
ERC (Ethereum Request for Comments) 7265, isproposed standardto enable “circuit breakerThis allows the DeFi protocol to add back-stops to smart contracts to stop the token before it exits the contract in the event of a hack. According to one creator of the standard run by @tcb_00 on Twitter, other creators include @Diyahir and @real_philogy.
The proposed ERC 7265 standard comes amid increasing DeFi hacking, with nearly $3 billion worth of funds stolen by DeFi protocol attackers to date, according to The Block’s Data Dashboard.
“We all agree that DeFi needs to be improved.” Meir Bank of Fluid Protocol say “Not only are there many hacks. But the end result was disastrous. When the protocol is hacked Often the protocol loses everything and TVL. [total value locks] became zero in a matter of seconds.”
DeFi attacks result in huge losses. This is because most protocols are not responding fast enough to stop them, according to Bank.
“By the time everyone realized what had happened. It’s too late. and even if the team tries to fix it It is often too late too.”
“ERC 7265 allows teams to create circuit breakers to protect their protocols,” Bank said. The attacker will no longer be able to drain all the money in seconds. And most of the money will be recoverable.”
The ERC 7265 standard is designed for a protocol that can be upgraded by governance. It’s the most common protocol in DeFi. “There are very few drawbacks and there are many advantages for DeFi protocols to include ERC 7265,” Bank said.
However, the ERC 7265 standard is still just a presentation. It remains to be seen if the Ethereum core team will accept and adopt it as a final standard.
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