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Few DeFi projects still lose money due to security hacks for each example balancer lost 500,000 worth of ETH to a hacker weeks ago, this shows that not all DeFi projects are capable of keep users funds safe, this is not the only problem I'm worried about, scammers have not even start building fake DeFi projects yet, maybe this DeFi story will end up like ICO hype of 2017? What's your thoughts on this?

Every projects lost money to hackers, it's nothing new, binance lost money to hackers in the past too, every DeFi projects that lost money to hackers should just tightened up just like how binance is more secured now, this isn't the end of the road and this doesn't mean that all DeFi projects will get hacked, team experience will be different

If its about lost the fund because of security, it can be happen not just in DeFi, i think this is a normal issue. But, to make this more secure and safe, it will better if collateral from user saved on difference wallet to prevent bigger lost. No matter where, that money must be saved, i think it must outside their system with secure authorization/authentication. At least when hacker can hacked their system, hacker need another layer to crack before get the fund. But using this way will need admin permission before money can be released, when admin make a mistake and his pc are compromised, of course it will possible to hacker get the money even already saved in outside of system.

There will always be bad news like this with few new projects, don't make it look like DeFi projects are prone to attacks from hackers, even exchanges got hacked over time, the project team should just strengthen up

Same old story, nothing new. Why would anyone keep putting lots of money in one central point of failure (i.e., a smart contract)?
It's like no one learns from the DAO hack which created ETC.

FYI, there is a probability that the creator puts the mistake by himself and hacks it by himself. The good thing is because of DeFi stuff, he takes no responsibility.

Balancer DeFi project is nothing like what you described, it just happened, the project is not a mere project created for the purpose of hype surrounding DeFi projects.

Im not totally against defi, but I can see some potential projects worth to invest with. However, with its rising fame, we can avoid some problems along the way, the news of 500k loses could somehow attributed to fault of the developer, some say it just an inside plan whom to keep those money but I heard they have refunded the loss of users. So technically they are not the who plan it and maybe just a real error on their case. Defi becoming a trens now, but I cant compare this to ICO which lack development and use case but purely and investment scheme used to trick, steal and rob from them.

To be frank I am just hearing this and I will surely agree I'm now getting rusty when it comes to being updated on most news. Nevertheless, this news about hacking of a DeFi project is not good at all most especially for something that is still young and growing. Also, I think it will be too early to start judging Defi projects with this single act but yet that doesn't mean due diligence shouldn't be adhered to all the time.
Lastly, hacking is one of the things which most platforms faces and where some will overcome it and continue developement others might not, so I think this is the time to know how experienced the team of that particular project is, if they will continue or give up.

DeFi
Pseudo decentralized finance as long as there is project administration there will always be an opportunity to steal, nullify or hack the system.

This is a legitimate concern, DeFi is just a loose group of Ethereum tokens/smart contracts, and it's quite possible that scammers will start making smart-contracts with backdoors or will just pull exit scams. It's also possible that DeFi will make ICO return, with new token scams claiming to be a part of DeFi.

Don't get caught in this DeFi hype, even if it will become more secure, it's still fundamentally flawed - it runs on Ethereum which has growing centralization, a lot of DeFi contracts are very limited in their nature or have some centralization in them.

The code that already used by defi is not fully audited by various parties. that's why to create a competition to find the vulnerability is a must or at least just try to hire some experts to do an audit to the code and platforms whether there was a vulnerability or not that can be used by scammer.

DeFi is the real deal now, the fact that we have a loss of 500k does not stop the potential in DeFi projects, things like this are bound to happen. Hackers are crazy these days that they can hack anything. DeFi projects are doing well now and they can only get better.

It seem Defi is the new kid in the block, especially with such price surge of compound everyone is talking about it, and yes I also read the article about Defi platform getting hacked, and I wonder if this will affect investors thoughts on Defi, I think some investors will still try and invest as long as security is tighten, and as for scam Defi project very possible we would start seeing some pretty soon.

not only the definition of the project, and the others also lost money because it was hacked so this is not a problem of its type but if the scamer has targeted it they will try to get it.
of course every project wants security guaranteed.

Hackers can target anything that has to do with crypto online, either it's exchanges or lending platforms, hacks are happening generally not just on DeFi projects, few DeFi projects have better secured network than others, you sound as if it's only DeFi projects

It is one issue that DeFi developers have to sold. This should lie to security and they have to invest more with it because it's the greatest protection that they can have especially if it's about keeping the money of their users.
DeFis are not even that popular up to this state and yet there are issues like this that they are facing. They just have to build their platforms' as strong as ever so that people will trust them, not that whenever a person hears DeFi, they'll think of it as low and weak security kind.

It can be a home work for the dev of such defi to increase its security. Im feeling worried to see that as there was a lot of possibilities if there will be another vulnerability in the platform. Any developers of various DEFI must try to upgrade their security and check the code anytime.

Whatever is trending in crypto space will definitely be a target for evil doers, DeFi is currently trending as we know it, hackers will do what they can to penetrate DeFi security, this is on DeFi projects team, they have to upgrade their security

Hackers are always searching different ways to hack the target and profit financially or in terms of user data that they can use further, moreover this is the fault of the developers that they left any vulnerability in the code which lead to an attack and thus caused users loosing their funds. The same thing also happened in past with many other ethereum network ICO and Dapps and in the case of DAO hack there was a hardfork of the ethereum blockchain which gave birth to ethereum classic. These kind of hacks are also beneficial for making the blockchain and website more secure because they make the vulnerability known to the developers and thus they can patch that vulnerability in the future making the code more secure.

Yes dear, there is always risk involved in any kind of new financial ecosystem especially when we talk about DeFi projects although they are good addition because community wants to see decentralized projects taking over but at the same time they are risky because they are not regulated and the game depends on codes and contracts when any hacker or breacher can take advantage, the best thing that can happen is that all these DeFi projects come up with an advanced security protocol or layer where they can be safe of all kinds of threats.

Do you know how many security flaws were on Etehreum from 2014?  Why people still trust math there is beyond my imagination. Yes OK do some fun project there that cost nothing but to do things worth million is just masochistic.

defi sites are relatively new on the market and obviously there are vulnerabilities in their systems, in smart contracts, perhaps they should have done more tests before launch

I think so and that needs more development progress. nothing perfect and those who have made the defi is also humans but they can do that even better from now.
I guess they have been doing the test but vulnerability is not something that can be detected easily.

Isn't the new ETH created on that DAO hack?  Correct me if I am wrong because as far as I know ETC is the one that maintained the original blockchain.


This is highly possible, and those who have a malicious mind can use that reasoning to run away with investors' money.

Yes, from BTCers point of view, I believe ETC is the original Ethereum chain since VB forked the ETH chain to undo the damage.
However, ETH is VB's project so he can do whatever he wants with it. In other words, VB's chain = Legit chain.

My point is, smart contracts prove multiple times that it is not secure. If the software is in BETA and they put a lot of money there, it is a recipe for disaster.

DeFi is not the only chain losing money to hackers presently, other blockchain projects lose money too, hackers only target projects with weak security that's hackable, it doesn't matter if it's exchanges or other platforms with different use cases

 Well DeFi is not the first program in crypto where people lose money so in my opinion developer should be more security conscious and if i were investors i would avoid using a cenrtalized platform  and leaving my assets there. As this is not very safe . Hackers have been doing their ugly jobs  of stealing people's assets even before the  birth of DeFi so we should just continue playing safe DeFi on its own is not the problem here.

DeFi is called Decentralized Finance.

And if you are saying that you'll be avoiding the centralized platform. How about these platforms that are not centralized yet they were still able to be hacked? although your advise of not keeping your assets there is right.

and since DeFi is the new hype in town, hackers are on the loose to try their best to get money as much as they can. DeFi or not, the chance of losing money is always there. so as a crypto user, you should not be too trusting with other projects. only a matter of time before they can penetrate other vulnerable projects.

Well, I can't say that Defi projects will end up like that of ICO hype but one thing stands and that is, scammers will definitely bring in their own projects to ride on the hype already built by the legit ones. So it means that, in as much as, people are chasing after Defi projects hype they should also be careful of the ones they invest in. Also, about a DeFi project being hacked, it shows that the team needs to improve on their services thus securing their platform even more, because if they can't do that adequately, they will only lose their users due to lack of trust and accountability.

Despite the present new hype in Defi projects, those who know te right thing they should do are already searching before investing yet some still use their hard-earned money to invest without knowing what the project truly stand for. This could be because many people now talk about Defi and that it is possible for Defi to push the market into bull run. They will be surprised that things are going to be happening differently this time.

I think so and that means the developers behind the defi can't develop a proper product and it looks like this developer is rarely doing an audit to its code. IMO this is happening with the platform that has a vulnerability and it can be used by the scammers to steal the funds. Hackers are always exploring the vulnerability of platforms.

Too often there have been a constant hack in the defi platform which is a bit worrisome now to investors, even though hacks also occurs in other crypto platform but the frequent occurrence is the issue, the dev of this new trend should do something to tighten up security, too early to be facing this kinds of attack.

i agree . they should act fast now and fix the issue when its early so that more money can be saved and investors of this kind of projects must avoid them temporarily just to be safe  .

 defi is new and its security isnt mature yet , that could be the reason why hackers target it  . our thoughts were sad and worried of course but we cant really do to those hackers because its done and we cant stop hackers on our own , i think all we can do is to warn others

https://blog.1inch.io/top-5-most-common-user-mistakes-in-defi-273001aeafc3
Top 5 most common user mistakes in DeFi
"In this post, we’ll discuss the most common mistakes made by 1inch users. Learn from them and don’t repeat these mistakes!
We at the 1inch Network hate to see users lose their funds, even when it happens as a result of their own mistakes. Therefore, we have prepared a top 5 of the most commonly made mistakes for you to learn from."

Nice article. They do generalize the things we need to be aware of if we are using defis. I guess, my lack of research about the coins are ruining my value of liquidity pair.
There are many defi coins to choose from but most of them promising larger APR generally decrease in value due to high inflation. Tokenomics are really important and not just the total supply but also how they are released. For example pancakeswaps cake token keeps its steady price even without a limit of total supply.

Actually, scammers also exist on this market, and if you haven't come across scam defi-projects yet, you are just lucky. Personally I invested in different projects and sometimes they were really deceptions, but more often I managed to withdraw my money before a complete crash. What is more, I set a spending limit on all platforms so that scammers can't touch my other money.

Hacking of projects did not just start now, it has been in existence right from the ico era not only DEFI projects who get hacked even popular exchanges like binance have been a victim of hack some time ago. That being said, I think the major cause of hack is a security challenge once the hacker finds a way to gain access into the central security. But if projects can strengthen their security measures then the incident of hacking will be greatly minimized.

Hacks and bugs are a way of life at this moment. The technology we are using is still very new. I suggest diversifying your investments and risk so you don't lose all of your funds in a single hack. I for example, stake half of my funds and the other half I farm in Ubeswap and Ref Finance. This way only a portion of my funds are at risk. You could also buy insurance if you are risk averse.

whatever it is in the crypto world, I think there's none that really perfect and there's always a gap whether in the security, the team members, the partner, or whatever it is. That's why cryptocurrencies are called the riskiest investment by some experts. It's really volatile and it's still new moreover DeFi. Cryptocurrencies are still in the beginning, there is still so much space to develop and grow. People are learning by doing and of course, fixing the mistakes here and there along the way.  However, I still believe that one day in the future we'll see cryptocurrencies at their finest, massive adopted, and solid.

In my opinion, those who have known the world of cryptocurrency for a long time, everything you do here with trading activities or investing in cryptocurrencies, including on some defi or other platforms, have risks that you must dare to beat because when you want to get a lot of profit then only with courage and confidence .

Crypto project money hacks or losses is a regular theme, but it has been on way before the Mt Gox episode. Since the crypto world is the domicile of huge sums of money, it is natural that malicious actors would be drawn to it. The important fact is how the projects, whether DeFi or non-DeFi, handle such

Hackers will be all the time and they advance within time and find new ways of how to steal money. So as not to come across such a robbery you should invest in projects with several audits.

Unfortunately, an audit is not always a guarantee as Balancer is a very reliable project with many audits, but you see that hackers still can find something unnoticed by auditors.

My thoughts are negative of course because that was a loss and not a gain but theres no one to be blame here because no one likes what happened except if it was intentional or an inside job .

Because that was the time were defi was still new but now that defi isn't that new anymore ,
more projects are now built carefully or securely but there's still a problem , scammers are now joining this trend because they see that defi is popular right now  .

Look at the statistics, I tried not to miss important events.
https://bitcointalk.org/index.php?topic=5267124
Recently, blockchain analytics companies have learned very well to help find hackers, so there are more refunds.
The prospects for this industry are enormous, it is too early to draw conclusions in less than 2 years.