Authors

Tarun Chitra, Peteris Erins, Kshitij Kulkarni

July 26, 2023

Research

Attacks on Dynamic DeFi Interest Rate Curves

Key Takeaways

As decentralized money market protocols continue to grow in value locked, there have been a number of optimizations proposed for improving capital efficiency.

One set of proposals from Euler Finance and Mars Protocol is to have an interest rate curve that is a proportional-integralderivative (PID) controller.

This paper demonstrates that attacks on proportional and proportional-integral controlled interest rate curves allow one to manipulate the interest rate curve to take a higher proportion of the earned yield than their pro-rata share of the lending pool.

Research

View the full presentation

Read the full paper

Blog
July 31, 2026
Gauntlet Vaults on Morpho Power Uniswap Earn
Yield on USDC, USDT, and ETH, curated by Gauntlet and built directly into the Uniswap web app and wallet.
Read More

Contact our team

Tell us about your protocol’s needs

1/4 Name

First, tell us your name

2/4 Contact Info

Tell us know to reach you.

3/4 Protocol Info

Tell us about your protocol.

4/4 Details

Just one more thing...

About

What makes us different

Learn more