The Ethereum community’s group of programmers has created the ERC-7265: Circuit Breaker standard in order to improve the security of DeFi protocols.
This new solution would allow developers to insert an automated “breaker” into smart contracts, which will halt the moving of tokens if the asset outflow rate boundary is reached.
Fluid Protocol founder Meir Bank commented that this will assist in conserving most of the funds in case of a hack, and would make the rest of the coins taken by attackers more retrievable.
Developers under the pseudonyms Diyahir, philogy and bd took part in the development of ERC-7265. Bank stated:
“We all agree that DeFi is not okay. There are not only many hacks, but the results are catastrophic – protocols often lose everything as a result of attacks. TVL merges to zero in seconds.”
According to The Block, at the start of June, the complete amount of funds stolen from DeFi protocols was roughly $2.85 billion. In the span of the past year, this has increased by almost $800 million.