Quantstamp, in a blog post today unveiled a “production-level automated” solution to detect flash loan vulnerabilities in DeFi projects. The tool; Economic Exploit Analysis, emanated as a result of the firm’s commitment to mitigating the increasing flash loan attacks on DeFi protocols.
In the blog post, the firm disclosed that it collaborated with a host of researchers to invent the solution. Likewise, the firm indicated that the newly launched tool is effective in noticing flash loan attack vulnerabilities in DeFi protocols. More so, Quantstamp explained that Economic Exploit Analysis can detect loopholes in “already launched or yet to be deployed” projects.
The project in the blog post that announced its latest product, revealed that within the first half of 2023, the DeFi space has lost about $207 million to flash loan hacks. Similarly, Quantstamp revealed that hackers leverage flash loans to borrow funds and manipulate the protocol in a way that developers don’t expect.
Further, the firm noted that flash loan hacks are effective in draining the Total Value Locked (TVL) of a DeFi protocol. Also, Quantstamp emphasized that flash loan hackers mostly dodge conventional audits due to the complicated nature of DeFi protocols. Quantstamp indicated that the solution is a reflection of its commitment to securing the Web3 ecosystem.
Accordingly, Quantstamp provided insights into some basic details about the tool. As revealed, the tool will support auditors to not only review client contracts but to also deploy contracts from other protocols. With that, it will aid projects to effectively detect flash loan attacks across the broader DeFi ecosystem.
Side note about Quantstamp
Furthermore, the company highlighted how the tool will contribute to the advancement of the decentralized finance landscape. Quantstamp registered confidence in the effectiveness of Economic Exploit Analysis in reducing the rate of flash loan attacks. Meanwhile, the project stated that it can help lower the “overall fund lost to hacks.”
Quantstamp is a prominent blockchain security firm with a mission to protect the future of Web3. Additionally, the project’s team consisted of leading security professionals. As revealed, some of the project has served a host of clients consisting of startups, governments, NGOs, and the private sector.
According to the project’s website, Quantstamp has carried out more than 500 audits and protected more than $200 billion worth of virtual assets against hackers.