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What Are the Primary Defenses against Flash Loan Attacks in DeFi Protocols?

TWAP $+$ Deviation Check $+$ Multi-Block Confirmation (Layered Defense Strategy)
Greeks.Live20.11.25

What Are the Primary Defenses against Flash Loan Attacks in DeFi Protocols?

Key defenses include using robust decentralized oracle networks that aggregate data, implementing Time-Weighted Average Prices (TWAPs) instead of spot prices, and using a "maximum price deviation" check to pause operations if the price changes too quickly. Protocols can also separate the logic that processes the flash loan from the logic that updates state based on the oracle, or require multi-block confirmations.

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