How 2 DeFi Attacks Made Almost $1 Million in Profit - Ep.113

Lev Livnev, a formal verification researcher at dapp.org and a founding partner at Symbolic Capital Partners, talks about the two attacks on bZx in the last week. He describes what the attackers did, why he thinks flash lending is not the culprit and how much he thinks bZx is to blame. Plus, we talk about what this means for DeFi in general and where the space goes from here. 

Thank you to our sponsors! 

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Episode links: 

Lev Livnev: https://lev.liv.nev.org.uk

CoinDesk explanation of both attacks: https://www.coindesk.com/everything-you-ever-wanted-to-know-about-the-defi-flash-loan-attack

The first attack: https://www.coindesk.com/exploit-during-ethdenver-reveals-experimental-nature-of-decentralized-finance

Peckshield analysis on the hack step by step: https://medium.com/@peckshield/bzx-hack-full-disclosure-with-detailed-profit-analysis-e6b1fa9b18fc

BZx's post-mortem on the first attack: https://bzx.network/blog/postmortem-ethdenver

Unchained interview with Compound: https://unchainedpodcast.com/how-youll-earn-interest-on-your-crypto-with-compound-ep-82/

Unchained interview with dYdX: https://unchainedpodcast.com/how-dydx-allows-you-to-take-a-short-position-in-one-token-ep-86/

Unconfirmed interview with Uniswap: https://unchainedpodcast.com/how-uniswap-quickly-became-one-of-the-most-popular-dexes/

The second attack: https://www.theblockcrypto.com/post/56207/bzx-attacked-again-645k-in-eth-estimated-to-be-lost

Sam Czsun blog post: https://samczsun.com/taking-undercollateralized-loans-for-fun-and-for-profit/

What all this means for bZx: https://www.theblockcrypto.com/genesis/56330/money-2-0-stuff-unus-sed-bzx

Unchained interview with Synthetix: https://unchainedpodcast.com/how-synthetix-became-the-second-largest-defi-platform/

Links from news recap:

https://unchainedpodcast.com/omg-bzx-wth/