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Abstract
Decentralized Finance (DeFi) incidents stemming from the exploitation of
smart contract vulnerabilities have culminated in financial damages exceeding 3
billion US dollars. Existing defense mechanisms typically focus on detecting
and reacting to malicious transactions executed by attackers that target victim
contracts. However, with the emergence of private transaction pools where
transactions are sent directly to miners without first appearing in public
mempools, current detection tools face significant challenges in identifying
attack activities effectively. Based on the fact that most attack logic rely on
deploying one or more intermediate smart contracts as supporting components to
the exploitation of victim contracts, detection methods have been proposed that
focus on identifying these adversarial contracts instead of adversarial
transactions. However, previous state-of-the-art approaches in this direction
have failed to produce results satisfactory enough for real-world deployment.
In this paper, we propose a new framework for effectively detecting DeFi
attacks via unveiling adversarial contracts. Our approach allows us to leverage
common attack patterns, code semantics and intrinsic characteristics found in
malicious smart contracts to build the LookAhead system based on Machine
Learning (ML) classifiers and a transformer model that is able to effectively
distinguish adversarial contracts from benign ones, and make timely predictions
of different types of potential attacks. Experiments show that LookAhead
achieves an F1-score as high as 0.8966, which represents an improvement of over
44.4% compared to the previous state-of-the-art solution Forta, with a False
Positive Rate (FPR) at only 0.16%.