Upon the recent flash loan exploit, for which 73% of users' funds were recovered, we have been in contact with multiple security experts to determine the next best steps for ensuring a safe relaunch of the Warp Finance protocol. After determining that the root cause of the exploit was an insecure, gameable price oracle, we set out to find the most robust oracle solution in the market. Our research and due diligence concluded that Chainlink was the most secure, reliable, and proven oracle solution, and will protect the Warp Finance ecosystem from similar flash loan-funded price oracle attacks moving forward.
As a borrowing and lending protocol for Liquidity Provider (LP) tokens from a variety of AMMs, the security of user funds is paramount to our success. As part of the Warp Finance protocol relaunch, we will use Chainlink Price Feeds for all supported assets, ensuring user funds are protected at all times against both previous exploits. This includes using Chainlink Price Feeds for DAI/ETH, BTC/ETH, USDT/ETH, and USDC/ETH, which are used to determine the valuations for both the stablecoins being lent by users as well as the LP tokens being used as collateral within loans.
Backed by proven cryptoeconomics, high-quality data, and provably secure and reliable oracle infrastructure, Chainlink’s time-tested and battle-hardened Price Feeds will ensure the Warp Finance protocol is resistant to flash loan attacks and consistently consuming price data that reflects the volume-weighted market-wide price via usage of multiple premium data aggregators. Unlike DEX-based price oracles, Chainlink ensures the manipulation of a single exchange has no effect over the pricing data being delivered to the Warp Finance protocol.Connecting Warp Finance to High-Quality Oracles That Provide Broad Market Coverage
As a protocol pushing the boundaries of the DeFi ecosystem, we want to assure users that the security of user deposits is our highest priority. Hence, b...