"GMX $42 million stolen: Atomic swaps may be a new solution for DeFi security"
$42 million! The recent hacking incident involving GMX is indeed shocking and has exposed some deep-seated issues in the DeFi space.
Reentrancy attacks are one of the common tactics used by hackers, especially in complex smart contract structures. They can exploit vulnerabilities in contract functions that are not updated in a timely manner, allowing repeated calls to cause the system to malfunction and steal assets.
As mentioned by @PortaltoBitcoin below, atomic swaps are a key solution that eliminates the space for hacking.
1. No liquidity pools, user assets are always under their control, preventing hackers from faking tokens to steal funds.
2. Simple structure, no need to store funds in contracts, reducing the opportunity for reentrancy attacks and eliminating the risk of theft.
3. Automated and transparent exchange process, swaps only occur when conditions are fully met, and funds are automatically refunded in case of failure.
Portal's core competitiveness lies in trustless cross-chain atomic swaps based on Bitcoin Layer 2.
Portal's atomic swap technology enables instant cross-chain asset exchanges without the need for third-party custody, greatly ensuring the security of user assets. Its non-custodial wallet design also allows users to have complete control over their assets, aligning with the decentralized development trend in the crypto industry.
This technological innovation provides users with a more convenient and secure cross-chain trading experience, serving as an important cornerstone for @PortaltoBitcoin to stand out in the competitive crypto market.
@KaitoAI #Yappers #Bitcoin #DeFI
The $42M GMX exploit on Arbitrum didn’t need to happen.
Could a single design choice have saved GMX and its LPs?
Here’s exactly what happened, why it keeps happening in DeFi, and how atomic swaps would have prevented it entirely, ELI5 Style 🧵⤵️
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