The 0x (ZRX) Vulnerability and Why Decentralized Exchanges (DEXs) Are Insecure
TLDR: The 0x team recently stopped all trades on 0x exchanges in order to patch a vulnerability that enables attackers to fill certain orders with invalid signatures. We believe that events like these demonstrate why many DEX smart contract systems aren’t as decentralized as their users might think.
In this blogpost, we address the inadvisable design practices we see in the DEX space, including:
- Hub Contracts
- Kill Switches, and
- Upgradeable Clauses
By taking a disintermediation-first approach to design and development, Liquality has eliminated many of the single points of failure that most decentralized exchange protocols face.
Read more on why DEXs are insecure.
