MakerDAO issues warning after a flash loan is used to pass a governance vote

MakerDAO issues warning after a flash loan is used to pass a governance vote
HeadlinesNewsMakerDAO issues warning after a flash loan is used to pass a governance vote

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MakerDAO issues warning after a flash loan is used to pass a governance vote

The Block5 months ago
Published on October 28, 2020 08:35 GMT+0edited on October 28, 2020 08:41 GMT+0

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The team behind a DeFi protocol wanted white-list access to MakerDAO’s price oracle. And to make it happen, they used a flash loan to manipulate a vote in a process that has triggered questions about the stablecoin platform’s governance apparatus.

The complicated nature of the situation was detailed in a forum post on Wednesday. It’s a notable example of flash loans, or lending arrangements that play out across a single Ethereum transaction, can lead to unexpected outcomes and create security quandaries across the largely experimental DeFi landscape.

Readers might remember flash loans as the central piece in a series of protocol exploits earlier this year. Ultimately, those exploits forced ecosystem participants to rethink their security practices in a fast-moving space.

Essentially, B …