{"id":6005,"date":"2024-08-14T16:54:05","date_gmt":"2024-08-14T23:54:05","guid":{"rendered":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/?page_id=6005"},"modified":"2024-09-19T21:12:50","modified_gmt":"2024-09-20T04:12:50","slug":"decentralized-finance-defi-and-blockchain-oracle-security","status":"publish","type":"page","link":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/projects\/decentralized-finance-defi-and-blockchain-oracle-security\/","title":{"rendered":"Decentralized Finance (DeFi) and Blockchain Oracle Security"},"content":{"rendered":"<h4>Contact: <a href=\"http:\/\/www.linkedin.com\/in\/xirui801\">Rui Xi<\/a>, xirui801@ece.ubc.ca<\/h4>\n<h3>Detecting Price Oracle Manipulation Attacks<\/h3>\n<p><span class=\"s1\">Decentralized Finance (<\/span><span class=\"s2\">DeFi) refers to a new category of financial applications that run on top of blockchain platforms like Ethereum. These applications provide traditional financial services, such as lending, borrowing, and trading, without intermediaries such as banks or brokers. DeFi applications rely on external data feeds, which bring data source outside of the blockchain (off-chain) and serve them on the blockchain (on-chain). A price oracle is a specialized oracle that provides the price feed of a given cryptocurrency. One of the most significant attacks exploits the dependency between DeFi application and its oracle, namely <\/span><span class=\"s1\">Price Oracle Manipulation Attack (POMA).<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6035 size-full\" src=\"https:\/\/blogs.ubc.ca\/dependablesystemslab\/files\/2024\/08\/Snipaste_2024-08-14_16-51-01-e1723679623885.png\" alt=\"\" width=\"1910\" height=\"1072\" srcset=\"https:\/\/blogs.ubc.ca\/dependablesystemslab\/files\/2024\/08\/Snipaste_2024-08-14_16-51-01-e1723679623885.png 1910w, https:\/\/blogs.ubc.ca\/dependablesystemslab\/files\/2024\/08\/Snipaste_2024-08-14_16-51-01-e1723679623885-300x168.png 300w, https:\/\/blogs.ubc.ca\/dependablesystemslab\/files\/2024\/08\/Snipaste_2024-08-14_16-51-01-e1723679623885-1024x575.png 1024w, https:\/\/blogs.ubc.ca\/dependablesystemslab\/files\/2024\/08\/Snipaste_2024-08-14_16-51-01-e1723679623885-768x431.png 768w, https:\/\/blogs.ubc.ca\/dependablesystemslab\/files\/2024\/08\/Snipaste_2024-08-14_16-51-01-e1723679623885-1536x862.png 1536w, https:\/\/blogs.ubc.ca\/dependablesystemslab\/files\/2024\/08\/Snipaste_2024-08-14_16-51-01-e1723679623885-800x449.png 800w\" sizes=\"auto, (max-width: 1910px) 100vw, 1910px\" \/><\/p>\n<p><span class=\"s1\">We propose POMABuster, a <\/span><span class=\"s2\"> system that monitors and analyzes transfers of cryptocurrency tokens to identify POMAs. POMABuster first recovers the high-level cryptocurrency trading semantics from low-level transfer logs, then uses a gate to filter suspicious trades that manipulate the price feed of an oracle, and finally, detects if any arbitrage takes the price imparity opportunity. We observed and exploited three insights on existing POMAs: the attackers focus only on high-value cryptocurrencies, keep these transactions close in time for the arbitrage opportunity, and their trading operations are in line with suspicious trading operations in traditional stock markets, as defined by the US Securities and Exchange Commission (SEC). As a result, <\/span><span class=\"s3\">POMABuster <\/span><span class=\"s2\">is not limited to single transaction POMAs, and does not rely on prior attack patterns to detect POMAs. Further, it incurs low performance overheads.<\/span><\/p>\n<p><a href=\"https:\/\/blogs.ubc.ca\/dependablesystemslab\/2024\/03\/09\/pomabuster-detecting-price-oracle-manipulation-attacks-in-decentralized-finance\/\">POMABuster: Detecting Price Oracle Manipulation Attacks in Decentralized Finance<\/a>, <span class=\"s4\">Rui Xi, Zehua Wang, and Karthik Pattabiraman, Proceedings of the\u00a0<a href=\"https:\/\/www.ieee-security.org\/TC\/SP2024\/\"><span class=\"s5\">IEEE Symposium on Security and Privacy (S&amp;P), 2024<\/span><\/a>. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contact: Rui Xi, xirui801@ece.ubc.ca Detecting Price Oracle Manipulation Attacks Decentralized Finance (DeFi) refers to a new category of financial applications that run on top of blockchain platforms like Ethereum. These applications provide traditional financial services, such as lending, borrowing, and &hellip; <a href=\"https:\/\/blogs.ubc.ca\/dependablesystemslab\/projects\/decentralized-finance-defi-and-blockchain-oracle-security\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":102075,"featured_media":0,"parent":5067,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-6005","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/pages\/6005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/users\/102075"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/comments?post=6005"}],"version-history":[{"count":11,"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/pages\/6005\/revisions"}],"predecessor-version":[{"id":6059,"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/pages\/6005\/revisions\/6059"}],"up":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/pages\/5067"}],"wp:attachment":[{"href":"https:\/\/blogs.ubc.ca\/dependablesystemslab\/wp-json\/wp\/v2\/media?parent=6005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}