Imagine a scenario: hackers don't directly steal tokens, but instead deploy a "logic landmine" into the core pool of a mainstream lending protocol via flash loans. This trap is highly covert—any attempt to execute the liquidation function triggers the rollback logic, consuming all the Gas of the executor. The result? The liquidation function becomes completely disabled.



No one can liquidate positions. As the price of the main cryptocurrency drops, bad debts start to pile up like a snowball. The hacker then sends a ransom note: pay 100 million USD, and I will disarm this bomb. Sounds unbelievable? In reality, this is the threat of a Denial of Service (DoS) attack faced by DeFi protocols.

**Why is this kind of attack so dangerous?**

The key lies in the fact that the liquidation function is the lifeline of DeFi lending protocols. Once liquidation is locked, bad debts cannot be processed, and the entire collateral system of the protocol will collapse. The hacker's goal isn't to directly steal funds, but to destroy the core mechanism of the protocol.

**How should protocols defend against this?**

**Gas Management and Auditing**: Lending protocols like Lista DAO must control the Gas consumption of the liquidation function from the source. Contract code needs to undergo rigorous formal verification and auditing to ensure that critical paths do not infinitely expand due to external parameters (such as loop counts or user numbers).

**Emergency Shutdown Mechanism**: Most importantly, implement an emergency mode controlled by the DAO community. When abnormal attacks are detected, governance votes can quickly upgrade the contract logic, bypass polluted functions, or even freeze the hacker's addresses' funds. This acts as the protocol's "emergency button."

**What should users do?**

If you're using a lending protocol and notice that the liquidation function has been disabled for a long time or that execution costs have sharply increased, this could be a red flag. Stay alert to official announcements and consider reducing your exposure. This is not paranoia, but a responsible approach to safeguarding your assets.
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FOMOSapienvip
· 13h ago
Damn, the imagination of this logical minefield is incredible... If hackers really dare to do this, they would be true terrorists in the DeFi world. So if the liquidation function is messed up, the entire lending protocol is doomed? Looks like these projects need thorough audits. It was high time to have an emergency button. Many protocols are still sleeping now. The part I pay the most attention to is Gas management. Formal verification really needs to keep up; don’t wait until something goes wrong and then regret. People using lending protocols should be more cautious. If they find liquidation is stuck, they should run immediately and not get caught in a trap. Once this kind of attack appears, the whole chain has to be careful. Even giants like Lido are not safe.
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MetaverseLandlordvip
· 13h ago
The liquidation function being locked is really a killer move, even more ruthless than directly stealing coins. Hackers really played their cards well this time; a $100 million ransom is quite crazy. That's why you must always keep an eye on niche protocols; the risks are really high. If projects like Lista can't defend against such attacks, they're probably doomed. The idea of an emergency shutdown for DAO is good, but what if the voting speed can't keep up? By the way, users also need to learn to spot the signs—if gas fees suddenly spike, run. DoS attacks are indeed the most covert knives in DeFi, with devastating power. Formal verification sounds expensive; small projects probably can't afford it. I'm now only testing with small amounts; I prefer to miss out rather than risk a loss. Such ransom scenarios might really happen in the future; it's too terrifying. Contract audits can't be skipped; I would trust even the cheapest ones.
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MEVSandwichvip
· 13h ago
The liquidation function being locked is a really ruthless move, no different from extortion.
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MergeConflictvip
· 13h ago
Damn, this logic mine is really deadly. If the liquidation function gets locked, the protocol is directly screwed.
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pvt_key_collectorvip
· 13h ago
Damn, the logic bomb is ruthless, directly cutting off the source If liquidation kills the protocol, it's game over. That's more malicious than hacking directly Lista DAO, quickly lock down the Gas part, or you'll really get exploited for profit
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SigmaBrainvip
· 13h ago
Damn, this logic minefield design is really brilliant, directly blocking the liquidation path... Liquidation paralysis → bad debt explosion → extortion of 100 million, this hacker's mind is really sharp So, yeah, you really need to pay attention to whether the contract has Gas limits, or one day you'll get caught by the "emergency button" story I just want to know if Lista has really undergone formal verification, that's the key, right? Reducing risk exposure is no joke; if you don't want to get caught in a trap, you have to keep an eye on the liquidation functions at all times
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