There has been an increase in security breaches in decentralized finance (DeFi) protocols. Ethereum community members are proposing the ERC-7265 token standard as a response. In this regard, they are ready to step up for a new token standard aimed at increasing security.
developers a new token standard offered!
The Ethereum community recommends the ERC-7265 token standard for DeFi security. This standard will enable a system that allows DeFi protocols to add a new component called a “circuit breaker” to their smart contracts. This circuit breaker will act as a security measure for tokens in case of an attack.
Developers nicknamed Diyahir and Real_Philogy launched the new proposal. The standard outlines a smart contract interface for a circuit breaker that triggers a temporary halt of token outputs across the entire protocol when a predefined metric exceeds a certain threshold. More importantly, this circuit breaker does not assume the structure of the underlying protocol. It primarily acts as a transit mechanism for token exits. It is possible for developers to choose whether the circuit breaker contract will delay reconciliation. They can also choose whether to temporarily hold outputs or reject attempted outputs during a waiting period.
What does the ERC-7265 standard bring?
The proposed ERC-7265 standard comes in the context of an alarming increase in DeFi hacks. According to their latest data, hackers have stolen around $3 billion from various crypto projects to date. Meir Bank, one of the developers of Fluid Protocol, highlights the following:
We all agree that DeFi has many vulnerabilities. It’s not just the attacks themselves; The consequences are too severe. When a protocol is hacked, all assets are affected. This has a negative impact on the Total Locked Value (TVL) of the project.
Moreover, cryptocoin.comAs you can see from , DeFi attacks have caused significant financial losses. Meir Bank emphasizes that when the project team discovered the attack, assets had already been stolen and it was too late. “ERC-7265 allows developers to create a circuit breaker to protect the protocol with customizable high rate limits on each asset,” says Bank.
In addition, the team designed the ERC-7265 standard to elevate the governance of DeFi platforms. According to the proposal, this token standard provides several advantages for integration into DeFi projects. However, it also has a few technical drawbacks. However, the Ethereum core development team has yet to approve the new proposal for implementation. ERCs are token standards that embody certain features on the Ethereum network.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your own research and due diligence before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.