menuIcon
$ 103,159.4
BTC
$ 103,159.4
-0.15 %
$ 2,528.70
ETH
$ 2,528.70
-2.93 %
$ 0.7692
ADA
$ 0.7692
-4.00 %
$ 651.92
BNB
$ 651.92
-0.11 %
$ 169.65
SOL
$ 169.65
-4.23 %
Richard Adrian
Dec 11, 2019
by Richard Adrian

MakerDAO Responds to Developer Accusing Network of $340M Vulnerability

MakerDAO

Table of contents

  1. Safety Period  0 sec - 24 Hours
  2. Conclusion
The Maker Foundation is planning to roll out a series of governance polls focused on security improvement. This follows software developer Micah Zoltu’s account on how any cyber attacker with $20 million at their disposal; could infiltrate the MakerDAO network and make away with more than $340 million. Therefore, the Interim risk team of the Maker Foundation published a blog post announcing the voting system. Whereby one governance poll, for instance, asks the Maker community whether they should update the GSM (Governance Secure Module)  from 0 seconds to no less than 24 hours. 

At the beginning of this month; Zoltu claimed that it would cost a hacker up to $20 million to attack MakerDAO.

A penetration that could have the hacker possibly walk away with more than $340 million worth of Ethereum; locked within the ecosystem. Zoltan stated: 

“Maker DAO v2 was supposed to launch with safeguards against a hostile MKR holder stealing all collateral and potentially robbing a good chunk of Uniswap, Compound, and other systems integrated with Maker in the process. Instead, they decided not to.”

Safety Period  0 sec - 24 Hours

The software developer demonstrated that MakerDAO is focusing on mitigating the risk of nefarious exploits; through enforcement of the GSM delay once a new contract is scheduled. This safety period, therefore, allows the network to counter check the contract and make sure it is not malicious.

Nonetheless, during the delay duration, a malicious hacker with sufficient funds could also turn out and vote up their contracts. A contract (s) which could have programmable instructions to steal all collateral. Micah stated that it required more than $80,000 Maker (MKR) equivalent to approximately $42 million to alter any of the Maker Contracts. 

Conclusion

However, Zoltu added that the value of the Governance Secure Module delay is presently at 0 seconds. Which means that cyber security experts have zero possibilities of successfully defending the system from a possible attack. Despite the high level of risk, Zoltu noted in the blog post that Maker was unwilling to give up instantaneous governance control for the sake of protection. However, the Maker Foundation Interim Risk Team polled the governance issue to Maker’s community. 

Follow us on: News
MakerDAO Responds to Developer Accusing Network of $340M Vulnerability
Richard Adrian
Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience.

Top Picks