A group of Ethereum community members has proposed a new security measure aimed at protecting DeFi (decentralized finance) protocols from cyberattacks. Known as ERC-7265, the new standard introduces a “circuit breaker” that can halt token transfers in case of a suspected hack, effectively preventing losses before they happen.
ERC stands for «Ethereum Request for Comments», which is the official protocol for suggesting improvements to the Ethereum project. The number 7265 indicates its place in the queue of proposed improvements. Hence, ERC-4337 means «Ethereum network improvement number 7265».
Why to launch
This move comes in response to the increasing number of hacks. According to The Block's data dashboard, nearly $3 billion has been stolen from DeFi protocols over time. The losses are often severe because developers cannot always react promptly to unfolding events.
Implementing such a security upgrade would protect DeFi protocols by allowing them to set up individual rate limits for each asset, making it harder for hackers to empty an entire contract within seconds. This could potentially significantly mitigate the extent of damage caused by an attack.
It's important to note that this proposal is currently in the early stages. Its acceptance and implementation depend on the core Ethereum team and the broader community.
This proposal holds particular relevance in light of the recent Poly Network hack attack.
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