There is a new batch of drama keeping the cryptocurrency community in its grip. The MakerDAO project has come under scrutiny as it is seemingly possible to attack the project with “relative ease”.
The blog post outlining this potential attack vector has received a lot of attention in recent days.
MakerDAO is a Potential Threat
It is, theoretically, possible to steal all ETH from MakerDAO.
Those Ether balances are generated by users creating the DAI stablecoin, which has become all the craze in the lending space lately.
While this attack is not something everyone can pull off, there are certain groups who would benefit from giving it a try.
It requires 40,000 MKR – valued at $20m – to potentially make off with over $200m worth of Ether.
One possible hindrance is how acquiring those amounts of MKR is not all that easy.
While it can be bought from different exchanges, such high trading volume would inflate the price significantly.
The blog post also points out how the Maker Foundation could easily perform this attack right now.
It holds more than sufficient MKR tokens to make this happen, yet doing so would not be in their best interest.
It is not the first time a project running on top of Ethereum forms a potential risk to the ecosystem.
The first major incident occurred when The DAO got hacked, and eventually caused the split between ETH and ETC.
As unfeasible as an attack on the MakerDAO seems, one never knows what the future may bring.
Looking to advertise? We will gladly help spread the word about your project, company, or service. CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected]