By Nathan Ferguson
A decentralized exchange protocol named OracleSwap has lately become a target of several concerns. The broader community of the decentralized finance (DeFi) space is getting anxious about the Songbird Network-based DEX protocol. OracleSwap permits the consumers to obtain yield for the delegation of the Songbird and Flare tokens in their possession.
OracleSwap Witnesses Exposure of Private Keys in a Hack
However, on the 28th of this month, the protocol declared that the private keys on it had been compromised. This incident took place as a consequence of a development made in the protocol. The platform has made its code open-source which led to the exposure of the private keys. Subsequently, FlareMetrics (an entity providing data for the Flare Network) issued a warning.
It persuaded the delegates present on the OracleSwap protocol to shift to the rest of the FTSO operators. It additionally advised them to revoke the entirety of access to the respective protocol. The purpose behind making OracleSwap’s v2 open was that the community of FTSO could witness the developers operating on the code. Even then, the respective move’s unintended result was the exposure of the private keys.
With the private keys’ disclosure, the bad actors could conveniently attempt to steal the rewards from the OracleSwap consumers. Keeping this in view, FlareMetrics came to the front that addressed the delegates to revoke the entirety of access to OracleSwap protocol if they intend to prevent a mishap. In addition to this, it suggested that they should move to the rest of the FTSO providers.
As per FlareMetrics, this could be assistive in preventing terrible outcomes from taking place. According to it, by revoking the access, the bad actors could be stopped from obtaining a huge sum of the voting power. While responding to this situation, OracleSwap has declared that the platform will burn. Apart from that, it disclosed initiating a unique FTSO infrastructure. The respective infrastructure will be built under exclusive addresses.
This will be done following the implementation of the improvement proposals. This episode brings to the front the present challenges being gone through by the protocols in the decentralized finance sector. Security is categorized as the chief problem in the DeFi space. It is noteworthy here that one requires vigilantly overseeing the protection of the private keys as such incidents could result in significant losses.
The compromise of OracleSwap’s private keys has additionally ignited concerns around the entire DeFi community. Though they are already aware of the hazards linked to the sector of decentralized finance, the current incident provides an opportunity for the DeFi community to contemplate such matters. By pondering these problems, the crypto industry can operate on appropriate solutions.
In this way, they can enhance the security measures being taken by DeFi protocols. On the Flare Network, there are up to forty FTSO providers, as per the data shown by FlareMetrics. The consumers have a broad array of options in the case of delegating the tokens as well as earning rewards over them.
CEO of Flare Networks’ Remarks on Controversial FIP 01 Proposal
A few days back, Flare Networks’ CEO “Hugo Philion” commented on Flare’s FIP 01 proposal. As per the executive, the proposal targets to enhance the model for token distribution as well as minimize inflation in addition to assisting participation on the platform. In his words, the respective design takes inspiration from Bitcoin intending to provide rewards to those constructing infrastructure with additional tokens as compared to the initial expectation.