Ethereum

A smart contract developer recently pitched a new Ethereum request for comment (ERC) proposal that involved a circuit breaker-like mechanism. The developer, who goes by Meir Bank on Twitter, presented the Ethereum Improvement Protocol (EIP) as a solution for DeFi’s delayed response time in mitigating hacks.Meir Bank took to Twitter earlier today to share the proposal with the blockchain community:<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/2692911a1f7c41c989f187d6f4e530d1.png" />The new proposal was aimed at limiting the damage dealt by hacks on decentralized finance (DeFi) protocols, which Meir Bank described as the biggest problem with DeFi security. According to the smart contract developer, ERC 7265 would prevent DeFi protocols from losing all of their total value locked (TVL).In the unfortunate case that a DeFi project gets exploited, hackers are quick to drain its wallets leading to a rapid decline in the TVL. The circuit breaker protection offered by the latest proposal would protect the project’s funds by enforcing highly customized rate limit parameters on every crypto asset in its treasury.According to Meir Bank, most protocols can upgrade their security protocols through governance votes and enforce the EIP to mitigate the damage of a potential hack. Being controlled by a governance forum would also eliminate the risk of centralization.Read full article at <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">C</a><a href="https://cryptotale.org/crypto-developer-pitches-defi-circuit-breaker-to-reduce-hack-losses/" rel="noopener noreferrer nofollow">ryptoTale.</a>

Crypto Developer Pitches DeFi Circuit Breaker To Reduce Hack Losses

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