Balancing Security and Liquidity: A Time-Weighted Snapshot Framework for DAO Governance Voting

Fuente: arXiv
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Main Authors: Wang, Zayn, Pu, Frank, Cheung, Vinci, Hao, Robert
Format: Preprint
Published: 2025
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author Wang, Zayn
Pu, Frank
Cheung, Vinci
Hao, Robert
author_facet Wang, Zayn
Pu, Frank
Cheung, Vinci
Hao, Robert
contents As new project upgrading the blockchain industry, novel forms of attack challenges developers to rethink about the design of their innovations. In the growth stage of the development, Decentralized Autonomous Organizations (DAO) introduces different approaches in managing fund through voting in governance tokens. However, relying on tokens as a weight for voting introduces opportunities for hackers to manipulate voting results through flash loan, allowing malicious proposals - fund withdrawal from DAO to hacker's wallet - to execute through the smart contract. In this research, we learned different defense mechanism against the flash loan attack, and their weakness in accessibility that compromise the security of different blockchain projects. Based on our observation, we propose a new defensing structure and apply it with cases.
format Preprint
id arxiv_https___arxiv_org_abs_2505_00888
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Balancing Security and Liquidity: A Time-Weighted Snapshot Framework for DAO Governance Voting
Wang, Zayn
Pu, Frank
Cheung, Vinci
Hao, Robert
Cryptography and Security
As new project upgrading the blockchain industry, novel forms of attack challenges developers to rethink about the design of their innovations. In the growth stage of the development, Decentralized Autonomous Organizations (DAO) introduces different approaches in managing fund through voting in governance tokens. However, relying on tokens as a weight for voting introduces opportunities for hackers to manipulate voting results through flash loan, allowing malicious proposals - fund withdrawal from DAO to hacker's wallet - to execute through the smart contract. In this research, we learned different defense mechanism against the flash loan attack, and their weakness in accessibility that compromise the security of different blockchain projects. Based on our observation, we propose a new defensing structure and apply it with cases.
title Balancing Security and Liquidity: A Time-Weighted Snapshot Framework for DAO Governance Voting
topic Cryptography and Security
url https://arxiv.org/abs/2505.00888