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Ethereum is about to undergo the Pectra upgrade, which is undoubtedly a significant update. Numerous important Ethereum Improvement Proposals (EIPs) will be introduced through this opportunity. Among them, EIP-7702 brings a transformative change to Ethereum’s Externally Owned Accounts (EOAs). This proposal blurs the boundary between EOAs and Contract Accounts (CAs) and serves as a crucial step toward native account abstraction following EIP-4337. It introduces a new interaction model to the Ethereum ecosystem.
As the decentralized finance (DeFi) ecosystem continues to evolve rapidly, AAVE V2 has established itself as one of the leading decentralized lending protocols by offering innovative solutions for borrowing and liquidity management. Its trustless mechanism and efficient capital utilization have attracted a wide range of users and institutions. However, as the platform’s adoption and the scale of funds involved grow, the importance of security audits and risk management measures has become increasingly prominent. This manual delves into the core design, key functionalities, and audit considerations of the AAVE V2 protocol.
On January 13, 2025, according to the SlowMist MistEye security monitoring system, UniLend on the EVM chain was attacked, resulting in a loss of approximately $197K. The SlowMist security team analyzed the incident and shared the findings as follows: