Decentralized Finance (DeFi) apps have rapidly proliferated with the development of blockchain and smart contracts, whose maximum total value locked (TVL) has exceeded 100 billion dollars in the past few years. These apps allow users to interact and perform complicated financial activities. However, the vulnerabilities hiding in the smart contracts of DeFi apps have resulted in numerous security incidents, with most of them leading to funds (tokens) leaking and resulting in severe financial loss. In this paper, we summarize Token Leaking vulnerability of DeFi apps, which enable someone to abnormally withdraw funds that far exceed their deposits. Due to the massive amount of funds in DeFi apps, it is crucial to protect DeFi apps from Token Leaking vulnerabilities. Unfortunately, existing tools have limitations in addressing this vulnerability.

To address this issue, we propose DeFiWarder, a tool that traces on-chain transactions and protects DeFi apps from Token Leaking vulnerabilities. Specifically, DeFiWarder first records the execution logs (traces) of smart contracts. It then accurately recovers token transfers within transactions to catch the funds flow between users and DeFi apps, as well as the relations between users based on role mining. Finally, DeFiWarder utilizes anomaly detection to reveal Token Leaking vulnerabilities and related attack behaviors. We conducted experiments to demonstrate the effectiveness and efficiency of DeFiWarder. Specifically, DeFiWarder successfully revealed 25 Token Leaking vulnerabilities from 30 Defi apps. Moreover, its efficiency supports real-time detection of token leaking within on-chain transactions. In addition, we summarize five major reasons for Token Leaking vulnerability to assist DeFi apps in protecting their funds.

Jianzhong Su

Sun Yat-sen University

China

Xingwei Lin

Ant Group

Zhiyuan Fang

Sun Yat-sen University

Zhirong Zhu

Sun Yat-sen University

Jiachi Chen

Sun Yat-sen University

China

Zibin Zheng

Sun Yat-sen University

China

Wei Lv

Ant Group

Jiashui Wang

Zhejiang University & Ant Group