We continue the deep dive into the security precautions of Dexe Investment with a look at how the Active Portfolio feature protects against price manipulation using flashloan attacks. What are flashloans? Flashloans are a uniquely DeFi phenomenon where anyone can borrow a token and repay the debt in the same transaction. Instead of relying on heavy collateralization, flashloans work on the principle that if the borrower doesn’t deliver on repayment of the funds within a very narrow time limit, the original transaction is automatically reverted, returning the funds back to the lender. While brilliant and effective, this mechanism does allow…
