MarginFi Fixes $160M Flash Loan Vulnerability with No User Losses

A newly discovered bug in MarginFi’s system allowed potential borrowing without repayment, but was quickly patched after disclosure via its bug bounty program.

Summary

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Terms & Concepts
  • Flash Loan: A type of cryptocurrency loan that must be borrowed and repaid within the same transaction, often used in DeFi protocols.
  • Bug Bounty: A program where developers offer rewards to individuals who find and report security vulnerabilities in their software.
  • DeFi: Short for decentralized finance, it refers to blockchain-based financial services that operate without traditional intermediaries like banks.