DeFi
Chris Blec, a preferred crypto influencer who describes himself as a fierce advocate for immutable decentralized know-how, has alleged that the decentralized finance (DeFi) trade is colluding to cover a key vulnerability related to Chainlink.
Your complete DeFi trade – VCs, DAOs, devs, everybody – is colluding to cover the truth that if 5 individuals, chosen by @chainlink, ever determine (or are compelled) to go rogue, your entire DeFi ecosystem might be deliberately destroyed within the blink of a watch.
— Chris Blec (@ChrisBlec) February 7, 2023
In line with Blec, the builders, decentralized autonomous organizations (DAO) and enterprise capitalists, and others within the DeFi house are colluding, to cover the truth that if 5 individuals, chosen by Chainlink, ever determine (or are compelled) to go rogue, your entire DeFi ecosystem might be deliberately destroyed within the blink of a watch.
The vulnerability that Blec is referring to is the 4-of-9 multisig contract that controls Chainlink. He believes that the contract, which was previously a 3-of-20 multisig, is poorly secured. The 4-of-9 multisig is a safety measure that requires 4 out of 9 signatures to authorize a transaction.
A multisig contract is often attacked from inside, which on this case can be the keyholders assigned by Chainlink. Chris Blec believes that if compromised, this characteristic may set off a domino impact that can result in extreme penalties for the tasks that depend on Chainlink oracles for the reason that Chainlink multisig can add or take away any supply from any value feed.
In line with the crypto influencer, this threat extends to widespread DeFi tasks like Aave and MakerDAO, which use Chainlink’s oracles for value knowledge. Aave’s reliance on these value oracles is of specific concern to Blec, on condition that they helped allow over $2 trillion in transaction flows on Aave in 2022. The record of tasks which depend on Chainlink has been rising ever because it rolled out the proof of reserve service following FTX’s collapse.
