$3B+ has been lost in DeFi hacks in 2022 alone—putting the sector on track for the worst year in its history.
Fortunately, Chainlink infrastructure is being widely adopted to help prevent hacks, mitigate risks in DeFi, and provide greater transparency.
Circuit breakers are one important measure that protocols are implementing using Chainlink services. Developers can combine Chainlink Automation with Chainlink Proof of Reserve (PoR) to build circuit breakers that help prevent protocol insolvencies and systematic failures in DeFi.
To help ensure the end-to-end transparency of DeFi protocols, Chainlink Proof of Reserve provides smart contracts with the data needed to verify the true collateralization of any asset backed by cross-chain and off-chain reserves.