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Phylax Systems
App-defined security enforced by networks
Phylax Systems kirjasi uudelleen
Another hack, I've looked at recently is Vicuna Finance from March this year.
They lost $700K through LP token oracle manipulation on the Sonic chain.
The attack exploited a fundamental pricing flaw that could have been prevented with a simple assertion.
LP tokens were priced using a basic sum formula (price_token1 * amount_token1 + price_token0 * amount_token0) instead of fair pricing that accounts for the pool's constant product formula.
Attack sequence:
- Large swap from token0 to token1 artificially inflated LP token oracle price
- Deposit overvalued LP tokens as collateral
- Borrow maximum assets against inflated collateral value
- Reverse swap deflated LP price, leaving the protocol with bad debt
Price manipulation is a pattern we see over and over again, and it's a pattern that assertions protect well against.
In this example, we're experimenting with a new cheatcode that will allow for inspection of calls in the callstack, which is ideal for detecting intra tx price manipulations.
We check that a "swap" call cannot result in the price deviating more than 5% from the baseline at any time during tx execution. It's a simple, but powerful way to protect against, for example, flash loan attacks.

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The best example of catching the hack rather than monitoring the attack vector.
Watch closely.

jacob Φ31.7.2025
It's time to share a quick video showcasing how a poorly written smart contract with obvious bugs can be protected against exploits using assertions.
The bug allows anyone to drain the smart contract by calling withdraw with exactly 69 ETH as input.
The assertion has a variety of checks in place, making sure that only accounts that have made deposits can withdraw amounts corresponding to their initial deposits. It even covers reentry and intra-tx manipulations.
This is all live on our demo network. Reach out if you want to try it out!
So yeah, it's pretty cool!
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Assertions are enforced by the network itself.
Not by a monitoring service that might go down.
Not by a dashboard that might miss something.
Not by an AI model that might guess wrong.
By the same consensus mechanism that validates every transaction. The same validators that secure billions in value. The same network that has never been successfully attacked.
When your assertion says "this invariant must hold," the network enforces it. Period.
If a transaction would violate your security property, it doesn't get a warning. It doesn't get flagged for review.
It doesn't execute.
The network itself *is* your security layer.

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