DeFi is high risk, caution!

[Billo_]

Today, it was happening again for a famous Decentralized Finance (DeFi) project (Yearn Finance) to get partially hacked:

Yearn DAI v1 vault got exploited, the attacker got away with $2.8m, the vault lost $11m. Deposits into strategies disabled for v1 DAI, TUSD, USDC, USDT vaults while we investigate.

https://twitter.com/bantg/status/1357453626847952896

It is not uncommon for DeFi to get hacked because it's very risky. When a product called yam (a violette potato) got rekt, people lost tons of money.
Yearn is already very secured and Andre Cronje very experienced, so Kudos to Andre who has already improved DeFi a lot.
But even it got hacked today and has shown how risky DeFi is.

If you participate in projects like Yearn Finance or similar risky projects where you have your coins not safely stored by yourself, it can happen to get hacked. Keep in mind if you plan to use Defi, it is HIGH RISK for your coins to get hacked.

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[bitkanu]

There's no perfect defi, i guess if YFI code was fully audited especially on its flash loan feature but the vulnerability will always there.
It's a matter of time until someone with different formula will try to test it. Million dollars disappeared but I heard that the funds that already stolen by the hackers already frozen.
The hackers were taking DAI and is that mean if DAI was also centralized? This is a very interesting case.

The main problem is people never learn from their past experience.

[Bitbtc8]

Honestly DeFi should be the safest and hack proof but unfortunately they are worse than even centralized projects and platforms, anyways investors aren't blind I believe, if they want DeFi they should go get them, I am not ready to risk money on DeFi projects and not be able to sleep at night

[sunsilk]

Defi or funds on exchanges that are being kept, they're at risk. Defi's are known for having massive money and that's why hackers will look for a way to exploit its system until they get millions of money on that defi platform.

I guess there is no hack-proof exchange. in my opinion, centralize exchange will be my best bet on using an exchange like Binance your funds are insured remember that they were hacked and they still manage to pay everybody funds and continue their operation

It's just about the tighter security and it should be maintained and up to date. Binance isn't an exempted but at least they are increasing the level of their security and with their response from the last hack that happened to them, that give users peace that they can refund. But you have no idea if they will do that again.

[Kvalentine]

We've been in DeFi season since 2020 and that's why all hackers eyes have been on DeFi, they are fully aware that investors are into DeFi projects and they are raising insane amount of money, still I feel let down because DeFi projects are suppose to be stronger than other crypto projects

[harizen]

It's more of still taking a risk as there's a "big money" associated with putting money on DeFi.

Others are always testing the waters on whatever it can yield them a good profit in return, DeFi or not. They always find opportunities. Hacks are common so I will just hope that investors know the risks they are dealing with these DeFi's projects.

..still I feel let down because DeFi projects are suppose to be stronger than other crypto projects

Once there's always a strong hype involved, it will always be targeted by attackers and hackers.

[FireBallex]

DeFi is a high risk investment because devs who go DeFi aren't qualified to back up what DeFi really is, let's start from all the hacks here and there, followed by the access granted to DeFi projects code, since most DeFi projects are on ETH smart contract they manipulates the system themselves, smart contracts can be changed when they feel like, all this shows nothing but centralized finance malpractices

[slaman29]

And my decision to stay as far away as possible from Defi again proves to be wise. I know people are bragging left and right about 10x yields in a few weeks and moving it all around to make even more from every network and possible farming strategy but it's a dangerous game to play when you risk losing everything to hacks and exit scams. And they're happening too much for my liking. When will people learn?

[cabron]

Many of us are up to invest in it though. And its not just for the token but for its development that is why we took part on testing by joining the pools. We all know lending is very risky but yeahp a lot of us are risk-takers aka gamblers. The news didn't just say its $2.8m but its $11M, now i don't know who to believe but its still not different, they got robbed.

[noormcs5]

I think there were 17 hacks already on DEFI platforms. I guess there is no hack-proof exchange. in my opinion, centralize exchange will be my best bet on using an exchange like Binance your funds are insured remember that they were hacked and they still manage to pay everybody funds and continue their operation

This is not good for the Defi projects if we see they are getting hacked and people losing money. If this rate of hacking increases on Defi platform, the people trust will be lifted and they will hesitate to invest in them. This will not only impact the project but whole crypto market will be effected. Remember Defi is build on ethereum network and it will effect eth as well.

[JollyGood]

It really is very sad news but these DeFi are becoming magnets for hackers now.

I am not saying anything the hack mentioned in the thread but in general of all the hacks that have taken place on DeFi projects I wonder how many might be inside jobs where the owners or operators are behind an alleged hack that took place?

Today, it was happening again for a famous Decentralized Finance (DeFi) project (Yearn Finance) to get partially hacked:

Yearn DAI v1 vault got exploited, the attacker got away with $2.8m, the vault lost $11m. Deposits into strategies disabled for v1 DAI, TUSD, USDC, USDT vaults while we investigate.

https://twitter.com/bantg/status/1357453626847952896

It is not uncommon for DeFi to get hacked because it's very risky. When a product called yam (a violette potato) got rekt, people lost tons of money.
Yearn is already very secured and Andre Cronje very experienced, so Kudos to Andre who has already improved DeFi a lot.
But even it got hacked today and has shown how risky DeFi is.

If you participate in projects like Yearn Finance or similar risky projects where you have your coins not safely stored by yourself, it can happen to get hacked. Keep in mind if you plan to use Defi, it is HIGH RISK for your coins to get hacked.

[Oilacris]

If you participate in projects like Yearn Finance or similar risky projects where you have your coins not safely stored by yourself, it can happen to get hacked. Keep in mind if you plan to use Defi, it is HIGH RISK for your coins to get hacked.

Defi or not, its all hackable! Nothing on this world does have that 100% secure or safe which means each project does have the tendency to be hacked.

So always put up on your mind when you do tend to invest then its better to spend the money that you can only afford to lose.Dont go all in because no matter how
legit the project is, it doesnt give out guarantees that it would last forever or not to be hacked or faced up problems in the future.

Anything here on this market is high risk.So its always suggested to make your own research and verify everything and took up risk that
you can able to handle when shit things happen.

[aemma]

I am of the understanding that using that term or feature alone, that is, "decentralization or decentralized" is meant to speak a lot about DeFi (Decentralized Finance), but it seems the reverse is the case, that is, the team developing most of these DeFi projects do not seems to either have the right knowledge, experience and skills to build and maintain one. This is not the first DeFi to be hacked, neither is it the second, thus this will mean that, there could be something that the team are not doing well or failing to do, therefore it means that anyone investing in DeFi should be aware of the risks within it thus knowing how best to go about it, because the rising number of DeFi hacks is not good in anyway for the entire Defi ecosystem owing to the fact it will lead to more discouragements.

[Mahanton]

It really is very sad news but these DeFi are becoming magnets for hackers now.

I am not saying anything the hack mentioned in the thread but in general of all the hacks that have taken place on DeFi projects I wonder how many might be inside jobs where the owners or operators are behind an alleged hack that took place?

We cant really remove that kind of possibility in talks about possible inside jobs from developers/owners itself that's why its really hard to trust up any kind of projects
neither it would be DeFi or others because of these kind of probabilities.Anything can happen in an instant or with least knowing.

You are right that this is becoming magnets for hackers now and if we do try to look that intensity of hacking incidents between markets then you can actually
compare those numbers that do circulates on DeFi than with other projects in terms of hacking situations.

[Apostlekin$$$]

There are very limited numbers of special DeFi projects to look out for, I'm sure they will be big in future and today they are already well developed with no single problem, one is Polkadot and the other is Avalanche, the success of a project and it's future development depends on how pro the teams are, theses two projects got wonderful blockchain experts behind them

[leea-1334]

Defi or not, its all hackable! Nothing on this world does have that 100% secure or safe which means each project does have the tendency to be hacked.

So always put up on your mind when you do tend to invest then its better to spend the money that you can only afford to lose.Dont go all in because no matter how
legit the project is, it doesnt give out guarantees that it would last forever or not to be hacked or faced up problems in the future.

Anything here on this market is high risk.So its always suggested to make your own research and verify everything and took up risk that
you can able to handle when shit things happen.

True,,, but some things are more hackable than others and you can bet Defi is one of them. They are mainly built by programmers who are not as good as ETH direct ones so smart contracts are full of loopholes and even some of them have exact backdoors created by original programmers. Never leave your funds in these defi software, too many hacks to prove how insecure they all are:(

[darthflux]

Well, it depends on which defi are you supporting for, much better to invest on defi's that is already listed on exchanges and make use of some trading strategies for your funds not to be burned or lossed, that's my strategy for trading defi's using Mudrex for much easier trading.

[Stedsm]

DeFi is at its early stage and while I'm with you as I don't favor DeFi tokens and this thing itself, I believe it's gonna be a riverflow of money and there's nothing wrong in washing our hands in that river while we are all here to make money through trading. DeFi is the new Bitcoin-style paranoia and you don't know which project will give you how much and when, but buying small chunks of many of them will surely gain you huge. It is definitely high risk, but without high risks, there will be no higher rewards.

[Koutami]

Defi or not, its all hackable! Nothing on this world does have that 100% secure or safe which means each project does have the tendency to be hacked.

So always put up on your mind when you do tend to invest then its better to spend the money that you can only afford to lose.Dont go all in because no matter how
legit the project is, it doesnt give out guarantees that it would last forever or not to be hacked or faced up problems in the future.

Anything here on this market is high risk.So its always suggested to make your own research and verify everything and took up risk that
you can able to handle when shit things happen.

True,,, but some things are more hackable than others and you can bet Defi is one of them. They are mainly built by programmers who are not as good as ETH direct ones so smart contracts are full of loopholes and even some of them have exact backdoors created by original programmers. Never leave your funds in these defi software, too many hacks to prove how insecure they all are:(

There's many Smart-Contract auditor which capable to make sure the code is strong enough and make sure theres no security holes inside.
The problem is many Project wont spare enough money to pay auditor for it. Even though after the smart contract code has been deployed, the code cannot be changed anymore.

[shoreno]

there is a high reward lying behind these defis no wonder they are verry risky you but should know that before although better late as they say atleast you already realized and woken up for the spell that defis are given to the inocent individuals .

now this yearn defi is also verry shady at the beginning of its existence because its value shoots to the moon and easily bypass the value of btc and now it is collapsing but in a planned way