TY - GEN
T1 - Prevention of Flash Loan Attacking on the Decentralized Finance System of a Public Blockchain
AU - Wang, Yunlong
AU - He, Ran
AU - Guo, Haifeng
AU - Wang, Hongzhi
AU - Zhang, Yuxi
AU - Wang, Biliang
N1 - Publisher Copyright:
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2026.
PY - 2026
Y1 - 2026
N2 - Decentralized finance (DeFi) has revolutionized traditional financial paradigms by enabling innovative, permissionless financial transactions. Among these, flash loans represent a significant breakthrough, offering rapid liquidity without collateral requirements. However, the very features that make flash loans appealing also expose DeFi ecosystems to severe security threats. This paper presents a systematic analysis of flash loan attack methodologies, their implications, and potential countermeasures. We formalize the problem via a game-theoretic model, delineating the interactions between malicious actors and security mechanisms. Through detailed case studies of major flash loan attacks, we illustrate common exploit strategies and vulnerabilities within smart contracts. Furthermore, we propose a comprehensive, multilayered security framework that integrates real-time anomaly detection, enhanced smart contract verification, decentralized governance improvements, and cross-platform intelligence sharing. Empirical analysis leveraging blockchain security datasets underscores the viability of these mitigative measures. Our findings contribute to the broader discourse on DeFi security by providing a structured approach to mitigating the systemic risks associated with flash loans, thereby enhancing the resilience of decentralized financial systems.
AB - Decentralized finance (DeFi) has revolutionized traditional financial paradigms by enabling innovative, permissionless financial transactions. Among these, flash loans represent a significant breakthrough, offering rapid liquidity without collateral requirements. However, the very features that make flash loans appealing also expose DeFi ecosystems to severe security threats. This paper presents a systematic analysis of flash loan attack methodologies, their implications, and potential countermeasures. We formalize the problem via a game-theoretic model, delineating the interactions between malicious actors and security mechanisms. Through detailed case studies of major flash loan attacks, we illustrate common exploit strategies and vulnerabilities within smart contracts. Furthermore, we propose a comprehensive, multilayered security framework that integrates real-time anomaly detection, enhanced smart contract verification, decentralized governance improvements, and cross-platform intelligence sharing. Empirical analysis leveraging blockchain security datasets underscores the viability of these mitigative measures. Our findings contribute to the broader discourse on DeFi security by providing a structured approach to mitigating the systemic risks associated with flash loans, thereby enhancing the resilience of decentralized financial systems.
KW - DeFi governance
KW - Flash loans
KW - attack mitigation
KW - blockchain security
KW - cybersecurity frameworks
KW - decentralized finance
KW - game-theoretic modelling
KW - real-time anomaly detection
KW - smart contract vulnerabilities
UR - https://www.scopus.com/pages/publications/105022709740
U2 - 10.1007/978-981-95-2566-9_29
DO - 10.1007/978-981-95-2566-9_29
M3 - 会议稿件
AN - SCOPUS:105022709740
SN - 9789819525652
T3 - Communications in Computer and Information Science
SP - 431
EP - 445
BT - Data Science - 11th International Conference of Pioneering Computer Scientists, Engineers and Educators, ICPCSEE 2025, Proceedings
A2 - Yu, Yi
A2 - Pan, Haiwei
A2 - Han, Qilong
A2 - Wang, Hongzhi
A2 - Yu, Chen
A2 - Liu, Haiyi
A2 - Song, Xianhua
A2 - Lu, Zeguang
PB - Springer Science and Business Media Deutschland GmbH
T2 - 11th International Conference of Pioneering Computer Scientists, Engineers and Educators, ICPCSEE 2025
Y2 - 19 September 2025 through 21 September 2025
ER -