Can Ethereum's Circuit Breaker Enhance DeFi Security?
Adekunle Joshua
Ethereum developers have proposed a circuit breaker mechanism to enhance security
This mechanism would halt token outflows exceeding a predetermined limit
EIP-7265 allows developers to set the value that triggers the circuit breaker and choose between delayed settlement or complete reversal of outflows
It aims to prevent immediate asset drain in exploited DeFi protocols
The proposed circuit breaker mechanism has gained support on Github
However, smart contract auditor Enbang Wu suggests adding a timelock function to protect users against abuse of ERC-7625 by administrators
A timelock would grant users a grace period to withdraw assets if the circuit breaker's limit is suddenly changed by an administrator
It adds an extra layer of protection for users.