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The DeFi world continues to dissect the recent attacks on bZx. To most, the amount lost in the attacks is far less relevant than what the attacks suggest about how DeFi applications need to be designed.
Within that, one key topic of conversation is the role of price oracles - the systems by which DeFi applications check the prices of assets that dictate what happens in a given smart contract. Since asset price manipulation was at the core of the recent attacks, this is a particularly pertinent area of inquiry.
Yesterday, Chainlink announced that it would be helping bZx upgrade their systems taking advantage of Chainlink’s recently-launched “meta oracle.” On this episode of The Breakdown, Chainlink founder Sergey Nazarov discusses:
- The role of price oracles in DeFi
- How price oracles were targeted in the recent attacks
- What the DeFi industry can learn from early crypto exchange hacks