DeFi Security
Flash Loan Attacks: How They Work and How to Prevent Them
Case studies of price manipulation exploits and oracle defense patterns.
LOZULA Security Team
2026-04-30
8 min read
Key Takeaways for Security Teams
- Use multi-block time-weighted average prices to resist single-block manipulation.
Flash loans provide uncollateralized capital within a single transaction, making poor spot-price oracle integrations highly vulnerable.
Securing DeFi Oracles
Never use instant reserve ratios for collateral or liquidations. Integrate Chainlink decentralized feeds or Uniswap v3 TWAP.