A flash loan attack is an abuse of the smart contract security of a particular platform in which an attacker usually borrows a lot of funds that don’t require collateral. They then manipulate the price of a crypto asset on one exchange and quickly resell it on another one.
Flash loan attacks are the most common types of DeFi attacks since they are the cheapest to pull off and easiest to get away with. They have been consistently making headlines since DeFi’s surge in popularity in 2020 and appear to be growing more rampant in 2021, spanning several hundred million dollars in losses to date.
Recently there has been a massive increase in flash loan attacks in the DeFi space. Their occurrences have given birth to two popular solutions. Check out here for a detailed explanation.
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Decentralized Pricing Oracles
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Implementation of DeFi Security Platforms
https://blog.quillaudits.com/2021/01/12/flash-loan-attack-explained-part1-defi-in-out/