ETH DeFi 'circuit breaker' could cut hack losses by 70% — Developer

cointelegraph.com:

A decentralized finance “circuit breaker” could have prevented billions of dollars worth of crypto being stolen from DeFi protocols in 2022, according to the developer of the newly published ERC-7265 proposal.

A new Ethereum request for comment (ERC) was published on Github on July 3. In it, the lead developer Diyahir Campos proposed a standard for a DeFi “circuit breaker.” It essentially aims to set a standard for a smart contract with the ability to halt suspiciously large token outflows from a DeFi protocol.

1/ Announcing ERC 7265: Circuit BreakerWe are fixing the biggest problem with DeFi Security - lack of response time to mitigate hacks.Built by @Diyahir @tcb_00 @real_philogyhttps://t.co/4KQDYEK2H7

Last year was the single biggest year for crypto hacks, with at least $3.1 billion stolen from DeFi protocols, 65% of that coming out of cross-chain bridges. 

Speaking to Cointelegraph, Campos said circuit breakers could have prevented billions in losses.

Campos revealed he was one of the many that lost funds in the $195 million Euler Finance attack in March, which led to contagion that impacted 11 other protocols.

“Actually, I was one of the depositors in the Euler hack,” he said.

3/ Our data analysis shows that DeFi Guardian could have saved more than 50% of losses from the recent @eulerfinance hack.Instead of draining the entire TVL of Euler within moments, the Euler hacker would have been rate limited, saving tens of millions of dollars for users. pic.twitter.com/Nuck06iQIo

“From that experience, I’m looking at the TVL charts and the transactions that happened and really it begged the question:”

A typical DeFi protocol would see around 20% of total value locked entering or leaving a project in a day.

“Once you start talking