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  1. Home
  2. /Glossary
  3. /Governance Attack
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defi

Governance Attack

When someone acquires enough governance tokens to pass malicious proposals that benefit them at the expense of the protocol.

Definition

When someone acquires enough governance tokens to pass malicious proposals that benefit them at the expense of the protocol. This can include draining the treasury, changing fee structures, or minting new tokens. Flash loan governance attacks are especially dangerous because attackers can borrow voting power temporarily.

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Related Terms

Governance

The process of making decisions about a protocol's development and direction.

Flash Loan

An uncollateralized loan that must be borrowed and repaid within a single blockchain transaction.

DAO (Decentralized Autonomous Organization)

An organization run by code and governed by token holders instead of a traditional management structure.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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