Quantstamp is proud to join the MyID Alliance, a Digital ID initiative by ICONLOOP. As the world moves towards more online and less face-to-face interactions, Digital ID will be a key enabling technology. 

In this series, we describe the market dynamics of the 1st bZx attack so we can avoid attacks with market manipulation components in the future.

This post discusses how flash loans, zaps, and DeFi aggregators are leveraging composability in order to simplify the user experience and ultimately make DeFi markets hyper-efficient.

DeFi is blockchain’s first killer app, with assets locked up approaching $1 billion USD. But one major asset is missing: Bitcoin. Bitcoin is not only the first crypto asset, but the largest - with over $168 billion USD of Bitcoin in circulation it has deep pools of liquidity. It is one of the least volatile cryptocurrencies and has a large network of fiat on and off ramps. All these properties make it a great crypto-collateral. We think Bitcoin has the potential to transform the DeFi landscape as the most widespread and liquid asset available today.

Composability allows for DeFi projects to leverage one another to create powerful new functionality. However this composability also introduces more risk. These issues have existed for a while, but have been made easier to exploit through the introduction of flash loans. While flash loans themselves do not introduce new vulnerabilities, they level the playing field for attacks which previously required large amounts of capital.