Deep-dive into the Mango Markets economic attack

DeFi’s recent lending market economic attacks, risk monitoring and management has become a key factor for success within the ecosystem. Appropriate procedures need to be taken into account in order to ensure the future growth of the space. This article aims to explore the recent Mango Markets economic attack, how it was orchestrated, and possible mitigation strategies.

In order to understand how susceptible DeFi protocols are to each specific type of risk, we delve into the 62 largest incidents that have taken place to date. This includes hacks in the hundreds of millions for bridges, economic collapses of algorithmic stablecoins, and outright robbery of user funds. Here is the distribution of the main risk factors behind the 62 largest DeFi attacks. Over $50B in losses are accounted for economic risks. This estimate includes the collapse of the infamous Terra ecosystem.

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