0/ Through the series of hacks that have occurred since last summer, DeFi projects have learned through the experience of others and the sharing of best practices how best to handle a hack.
1/ This starts with a transparent disclosure to the community to make sure the initial facts are laid out and the extent of the damage is made clear. Concurrently the engineering team also patches the bug/vulnerability to stop any further loss of capital.
2/ The team then conducts a detailed analysis to understand the hack and produces a post-mortem which gives them a better idea how the attack was conducted and who the attacker might be.
3/ The team will then reach out to exchanges to blacklist the affected assets while also reaching out to the hacker suspected to negotiate a bug bounty. If the hacker refuses to co-operate, the team might contact the police for assistance.
4/ We understand that at least one hacker has been jailed after it was proven that he/she was the perpetrator of a hack although this was not widely publicized.
5/ Teams are getting so good with dealing with hacks that it will soon become a standard operating procedure no different than the procedures banks have in place when a heist occurs.
6/ There is also better co-operation now across teams when a hack happens. The community is willing to assist as they see a hack as an act against the progress of DeFi. Andre Cronje and the Yearn community deserves praise for this.
7/ Nonetheless hackers appear under-deterred. Somehow conducting a hack from behind a computer screen seems more permissible than conducting a bank heist and pointing guns at innocent people.
8/ Finally with the bull market underway, it is increasingly hard to find value in the market. Ironically hacks are one of the ways we find such value especially if the market over-reacts to an event that is non-critical.
9/ If you look at the majority of hacks that have transpired, most of the projects have able to get back on their feet quickly and come back stronger (Sushi, Maker, Akropolis, Yearn, Nexus, Compound etc).
• • •
Missing some Tweet in this thread? You can try to
force a refresh
