3 ms·
Am I understanding correctly that all of this happens in one single transaction? The flash loan is borrowed, deployed, and repaid in one fell swoop? I’m trying
by elliekelly 5y ago
Am I understanding correctly that all of this happens in one single transaction? The flash loan is borrowed, deployed, and repaid in one fell swoop?
I’m trying to think of the most complicated single transaction item I’ve ever seen booked. I wish I wasn’t so rusty because trying to figure out the journal entries for this would be a fun little nerd puzzle.
- gzer0 5y agoThe attack was executed over multiple transactions due to block gas limits, but the bulk of it happened in this transaction [0]. Edit: These sort of financial engineering, whether one believes it to be an inherent flaw or not, are the exact reason why banks and financial regulation were eventually adopted. Crypto becomes the wild west, we have these "flaws / glitches / financial engineering" -> many people lose money -> regulation by lawmakers -> the circle repeats itself. [0] https://etherscan.io/tx/0x0fe2542079644e107cbf13690eb9c2c65963ccb79089ff96bfaf8dced2331c92 https://etherscan.io/tx/0x0fe2542079644e107cbf13690eb9c2c659...
- lawn 5y agoMight be a nitpick, but banks predates computers by several centuries, so these kinds of vulnerabilities are not the reason why banks were "eventually adopted".
- elliekelly 5y agoThanks for the link! Your edit reflects my thoughts exactly. I posted an old Law Review comment[1] describing (at a very high level) the market conditions in the early 1900s that gave rise to federal securities regulation. It’s a bit surprising how many of those mistakes we’re “relearning” with crypto. I wonder whether perhaps the crypto craze might have come about, in part, because of the regulatory inaction following the Great Recession. [1]https://news.ycombinator.com/item?id=29041167 https://news.ycombinator.com/item?id=29041167