Last Thursday, leading DeFi platforms such as Celer Network and Compound Finance announced that they had become the target of a suspicious hacking campaign, with their domain names compromised. This incident reveals that as much potential as Web3 technologies are, they are still dependent on exploitable Web2 infrastructure.

Celer Network’s announcement states that a Domain Name System (DNS) attack is at the root of the problem. DNS works like the internet’s phone book and provides redirection to websites. When users log into a website, the browser actually translates the domain name (for example, celer.network) into an IP address.

In DNS attacks, attackers manipulate this translation process by putting pressure on or hijacking a DNS server. In this case, users may find themselves on a fake site controlled by attackers when they actually want to log in to the legitimate website. These fake sites are used for “phishing” attacks designed to steal users’ login credentials or expropriate their crypto assets.

Although the scope of the attack has not yet been fully determined, security experts think that more than one DeFi protocol may be at risk. Platforms such as Pendle Finance, Polymarket and THORChain are shown as potential targets.

This suggests that rather than focusing on a single high-profile target, attackers are attacking lesser-known platforms to create a broader impact and steal more crypto assets. Fortunately, the attack has not yet been successful and no stolen funds have been reported by press time. However, this situation emphasizes that DeFi platforms and users need to be vigilant.

While the investigation into the origin of the attack continues, the Google Domains platform stands out as a potential weak link. Some researchers suggest that the attacks may have originated from Google Domains accounts used by these protocols.

With Squarespace’s acquisition of Google Domains last year, any website using that platform could become vulnerable to attack. This concern brings to the fore the dependence of DeFi platforms on third-party services, which form a decentralized element in their security architecture.

Celer Network and Compound Finance platforms have not yet announced that they have completely resolved the problem. In this environment of uncertainty, users need to be cautious and exercise caution before interacting with DeFi applications. Users are advised to always check the URL of the website they are logging into and cancel the transaction if they notice anything suspicious. To log in to a legitimate website, it is always safest to go directly to the platform’s own website.

This incident once again reveals the need to strengthen the security infrastructure of Web3 technologies. In recent years, the role of so-called “white hat” security experts in the cryptocurrency field has become increasingly important.

These experts play a critical role in preventing attacks by finding and reporting the vulnerability of DeFi protocols and blockchains. For example, first response Telegram bots like SEAL 911 and security councils featuring industry leaders are emerging initiatives to strengthen Web3’s security infrastructure. These initiatives have an important place in preventing attacks and reducing their impact by creating early warning systems and coordination networks.

The attack on Celer Network and Compound Finance shows that Web3 technologies are still in their infancy and may be vulnerable to security risks. However, this incident is also proof that the industry is becoming increasingly security conscious and taking measures to counter attacks.

The future of Web3 depends on the collaboration of security experts, developers, and community members to approach the security standards of traditional finance while maintaining its decentralized structure. Stronger cryptography, advanced smart contract security and decentralized security solutions will be critical elements that will shape the future of Web3.