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MakerDAO Project Could Have Been Wiped Out By Malicious Actor

 
MakerDAO Project Could Have Been Wiped Out By Malicious Actor
Breaking News / Cryptocoins
  • The Maker Foundation has recently announced that it is introducing a fresh security proposal.
  • This comes after it was revealed that a malicious individual with enough MKR token could actually steal the whole collateral in MakerDAO.
  • Micah Zoltu said that if anyone was to hold around 80k MKR tokens could wipe out MakerDAO. 

The Maker Foundation has recently announced that it is introducing a fresh security proposal after it was revealed that a malicious individual with enough MKR token could actually steal the whole collateral in MakerDAO. This would mean this person would be running away with over $340 million.

Daylight robbery

Micah Zoltu wrote in a recent Medium post published last week. The developer said that if anyone was to hold around 80k MKR tokens, they could essentially hold the most power in that community and could potentially wipe out all of the collateral in MakerDAO. 

Zoltu writes:

“The problem is, Maker Foundation has decided that the appropriate value for this governance delay is 0 seconds. That is right, defenders have 0 seconds to defend against an attack launched by a wealthy but malicious party.”

Given the lack of protocols in relation to the shutdowns and governance delays, this allows people with malicious intent to steal all of the collateral in MakerDao. 

On top of this, defenders wouldn’t have any time whatsoever to protect the system against the attack, from such indivduals.

Following on from the above, Zoltu continues, saying:

“An attacker could do the following: acquire 80,000 MKR through whatever means possible. Create an executive contract that is programmed to transfer all collateral from Maker to you. Immediately (in the same transaction) vote on the contract. Immediately (in the same transaction) activate the contract. [And,] ride off into the sunset with 340M USD worth of ETH.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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