Can DeFi still be trusted??

[Ludmilla_rose1995]

Exploiters seemed to use a flash loan attack to trick the protocol and steal more than 53 bitcoin, worth $1.1 million, and 10,000 tether (USDT), a stablecoin backed on a 1-1 basis with U.S. dollars. The exploit comes just over two months after attackers stole $15 million worth of cryptocurrencies from Inverse Finance in a similar attack, as previously reported.

Blockchain data apparently shows the exploiters flash-borrowed some 27,000 wrapped bitcoin from lending protocol Aave to conduct the attack. The funds were routed through swap service Curve for various stablecoins before being used to remove DOLA, a stablecoin, from Inverse Finance pools.

An address tagged as “Inverse Finance Exploiter” on blockchain analysis tool Etherscan apparently sent 900 ether, worth $1 million, to privacy mixer Tornado Cash following the exploit, data shows.
Tornado Cash allows users to mask addresses and is sometimes employed by attackers to hide their stolen funds.

➥ https://www.coindesk.com/tech/2022/06/16/defi-protocol-inverse-finance-exploited-for-12m/

another bad day for inverse finance, they got exploited for $1.2 million. due to this news INV token trading volume dropped drastically (72%).

whether vulnerabilities to exploits in DeFi make investor funds insecure?  

if you have invested in DeFi token please give your opinion!

[hugeblack]

Finding loopholes in these smart contracts is not easy and spending about 900 Ethereum trying to exploit them suggests that people have a connection to the smart contract developers, which ultimately proves that the word “decentralized finance” is for media propaganda as these platforms are completely centralized.

Therefore, you must not trust those currencies that are based on the principle of proof of stake or that do not contain a sufficient number of miners, or those that are linked to the programming of certain contracts such as centralized exchanges and others, in short, buy bitcoin.

only less than 1%of altcoins are true decentralized.

[cryptomaniac_xxx]

"Trust" is subjective, and it Defi market, it's open and hackers can exploit it anytime. So it's not about trust, it's how they build the project and how they are going to update it and protect their code from such hackers. Because if they are not, then cases like this will happen over and over again. So they have the full responsibility and the accountability if something wrong happen to them and cyber criminals stole from their project and the money of their investors.

[yurez]

DeFi platforms are still subject to hacks and attacks, even after passing security audits. Some teams seek to secure user funds or recover losses, but there is no complete guarantee of security. As DeFi projects increase, there will also be more hacks despite advances in technology and security, so either take the risk or don't invest.

[FrozenBit]

In recent years, after the explosion of blockchain technology, especially the Defi trend in the cryptocurrency market, has been a place where cybercriminals are more active, with both large and small-scale hacks. I feel this is still a problem that needs to be carefully considered every time developers release a product to go into operation. As users are afflicted with such incidents, it gives a negative view to outsiders as well as insiders when hearing about the market. Perhaps crypto theft has taken place in various forms since early 2022. With hackers using mining and phishing methods to steal millions of dollars from platforms and online from users, It is difficult to determine the effect of this large-scale theft on industry growth. However, it is definitely not a positive thing.

[cryptoaddictchie]

DeFi platforms are still subject to hacks and attacks, even after passing security audits. Some teams seek to secure user funds or recover losses, but there is no complete guarantee of security. As DeFi projects increase, there will also be more hacks despite advances in technology and security, so either take the risk or don't invest.

Seems like it. But even having security audits can still be at risk for some defi product. Well lets say that black hat hacker are way smarter than them and able to manuever their defense.

Its not that easy to find an exploit with those smart contract its just that these guys are way trying hard to make this possible to a point they need every loopholes just to secure a perfect exploit.

[asriloni]

Defi can't be trusted. You shall be careful with defi. Celcius was being investigated by some countries along with the new case that was coming from the babel finance. DEFI is just a scam. This is not decentralized caused by the owner has control over your money.
You must be careful when facing with the defi. There are bunch of defi were doing shady things. During the bearish market and so many defi facing various liquidity problem and they were suspending their platforms without any notice.

[Ludmilla_rose1995]

Defi can't be trusted. You shall be careful with defi. Celcius was being investigated by some countries along with the new case that was coming from the babel finance. DEFI is just a scam. This is not decentralized caused by the owner has control over your money.
You must be careful when facing with the defi. There are bunch of defi were doing shady things. During the bearish market and so many defi facing various liquidity problem and they were suspending their platforms without any notice.

I also heard this news, Celsius is being investigated and that really worries investors who join their staking program. Honestly, I learned a lot from this, I bought $banana at a price of $1.2 but now the price is not up to $0.1, This makes me lose a lot, I don't know when the $banana price will go up again!

[Lagduf]

DEFI was in the way to collapse maybe next year if the bearish market will still continue. More and more defi were facing huge problem caused by these defi must face a chance to get a margin call which can make defi becomes bankrupt and it can't pay anyone who have their amounts in the defi
This platform needs so many solutions to fix the problem. Celcius and many more defi can't be trusted right now. They can freeze your money anytime as they want.
This must become a huge red alert for anyone to avoid defi for now. 

[bittraffic]

Not anymore. There are defi projects that weren't very popular which their token was worth about $3 when it starts now, its gone. The Defi needs a savior which I guess the government will step in to make themselves a savior in this space of crypto. Since Luna there were lots of them crashing even the old projects with staking and lending on it.

[GreatArkansas]

DeFi itself has nothing to do with these kinds of incidents. Most of these incidents are mistakes by the project itself. So I won't blame DeFi because there are some projects who got no problem at all and they are very careful because we all know that there is a lot of money involved with their project.
For sure it is a mistake also because they forgot or not aware of it for sure.

[TastyChillySauce00]

DEFI is shit now. Just like how celcius was suspending all of withdrawal. This is shittiest platform that i have ever seen that only used gimmick to be fully decentralized. This gives us very important lesson about not your keys and not your coin. Mostly of defi lending platforms are so garbage.
Look at how garbage celcius, 4AC and some defi that were starting to collapse. DEFI was still an experiment and this is not even decentralized.
People's money hodl by the owner of platforms without any eta about when the platform will be able to be used again.

[Pelana vreo]

If the DeFi Platform is hacked, then I believe the developer who created the smart contract made a mistake by giving the contract access to one of the teams who then wanted to make a quick profit. In general DeFi is decentralized but if hackers can get into the protocol, I think something is wrong with the team's performance, because so far the developers seem to be blaming hackers to avoid a lot of demands from investors.

[MAAManda]

It seems that this kind of incident is nothing new in DeFi. Based on data compiled by CryptoSec, there have been 101 cases of exploitation and hacking on DeFi so far. I agree with what @cryptomaniac_xxx said, trust is subjective. And developers should be more careful in developing their projects, Maybe by developing an advanced security system.

Reference:
[1] https://cryptosec.info/defi-hacks/

[tbct_mt2]

Leveraging is bad if you use it uncontrollable in a volatile market like crypto market.

Answering your question, DeFi will still be here and trusted or not, it depends on each DeFi project. You can not judge it generally.

Bitcoin is good for everyone but there are scam projects that have Bitcoin as one of their payment methods.
DeFi is good but there are scam projects with DeFi concept. Some DeFi projects collapse not because they are scam. It's because they are bad with risk and finance management. Bad management is not scam.

Bitcoin, blockchain, cryptocurrency, DeFi will be here. They will be changed to be better but they will not going anywhere.

[Faisal2202]

Defi purpose was to provide anonymous transactions which is not that true to some extent. But where are good people there are also bad evil minds there too. People are not using their talent to enhance the functionalities of the Defi ecosystem but their are just stealing money from the protocols, As it's totally decentralized so it become a little bit hard to find the hacker or intruders than the centralized hacker or intruder. No doubt some-times platform itself leaves some loop holes to get into the system and announce that someone got into our system and uses these protocols to steal money. Now what we can do. in the last 2 years, billions of dollars were stolen due to these poor protocols and i don't think that these developer are that unqualified, To make such an authentic platform they need some good developers, to save the expenses many platform hire low profile developers to do the task but that's a gambling with our money, so over all we can't trust defi unless some good developers came into field to put their hardwork into defi ecosystem with less profits

[SaveOurSea]

if WEB3 is still running and more and more people are using it, so will Defi, because we all know Defi is on WEB3, just like NFT,
therefore Defi's project can still be trusted, but we must know that the project is a crypto-currency altcoin we have to look at the fundamentals,
don't just choose a coin, if you don't want to be scammed.

[DapanasFruit]

Am sure all the turmoil affecting the crypto market right now including those classified as DeFi platforms can push down the trust and confidence of the many on decentralized finance thing. We have to remember that there is a big and strong expectations from the users that they are dealing with safe and potentially lucrative platforms here and only to be dismayed when they find out that what they trusted too much has been hacked and is now a candidate to just be another relic in the frauds and scams infested industry we are in. Personally speaking, I am no so sure when will I ever trust DeFi again.

[ije07]

no one we can trust because everything is centralized from their system and Crypto theft is frequent and not only Defi projects is it just propaganda or something thats why new projects should be built and have good security though i just feel some projects hacked are pure error from within.

[Cashi]

You need to watch carefully, which DeFi project it is. Not all DeFi is similar and some DeFi are very reliable.

A very reliable DeFi is Uniswap.

It's hard to compromise because Uniswap is suited for easy swaps. Good product and it will be used for decades. It is why Uniswap was so famous and I'm sure, in a new bull market cycle, it will be famous again. Swaps will continue to be used.

[asyakashi]

DeFi averages only to be reliable in the short term. I've seen how DeFi projects last only a few weeks and at most they will last for a few months before they disappear completely. If DeFi is said to be trustworthy I think it is yes as long as it works but we have to know that DeFi is not for long term.

[Mosharafhh]

From the first thats the main point of loosing money on defi there always a risk of hacking or other thing but its not only defi virtual currency different types of exchange also loosing by hacking or other thing thats very irritating in this sector! Also lots of project doing rug thats also lost of trust!

[WeedGoW]

It can be trusted when the market is in bull, they're making the money easily from the money you lend them. When the market is in bear, less good opportunities in the market. Even trying to stay afloat, keeping your fund intact is a problem when every coin goes down. Tell me, can DeFi still be trusted at times?

[lalabotax]

due to this news INV token trading volume dropped drastically (72%).
whether vulnerabilities to exploits in DeFi make investor funds insecure?  if you have investment in DeFi token please give your opinion!!

Isn't this nothing new? We'll see how other projects besides deFi can also drop very far from the price at the time of listing. Not because of the DeFi but more about how the project, the team, and also the trust of the holders in the coin or token.
Investing in crypto will require risks. moreover if we are investing in new projects, will it really guarantee us to feel secure? Never.

[isaac_clarke22]

~

I mean it does not just apply to DeFi, it applies to any exchanges out there. Would you trust your funds with any exchanges out there? Every sites has its own vulnerability even software. It is the internet anyway and you know what hackers and exploiters are after at.

[Xal0lex]

whether vulnerabilities to exploits in DeFi make investor funds insecure?  if you have investment in DeFi token please give your opinion!!

DeFi had and still has the same problems. Anonymity of developers, lack of identification when token is listed on DEX, a lot of vulnerabilities in smart contracts, even in projects with passed audit, and also the possibility of rug pull, when liquidity disappears from some liquidity pool and so-called exit-scam occurs. Even André Cronje, the developer of DeFi projects, says that this industry needs to be regulated, otherwise these problems hindering development will remain and people will perceive DeFi as a high-risk business without regulation.

[Abiky]

another bad day for inverse finance, they got exploited for $1.2 million

Exploiters seemed to use a flash loan attack to trick the protocol and steal more than 53 bitcoin, worth $1.1 million, and 10,000 tether (USDT), a stablecoin backed on a 1-1 basis with U.S. dollars. The exploit comes just over two months after attackers stole $15 million worth of cryptocurrencies from Inverse Finance in a similar attack, as previously reported.

Blockchain data apparently shows the exploiters flash-borrowed some 27,000 wrapped bitcoin from lending protocol Aave to conduct the attack. The funds were routed through swap service Curve for various stablecoins before being used to remove DOLA, a stablecoin, from Inverse Finance pools.

An address tagged as “Inverse Finance Exploiter” on blockchain analysis tool Etherscan apparently sent 900 ether, worth $1 million, to privacy mixer Tornado Cash following the exploit, data shows.
Tornado Cash allows users to mask addresses and is sometimes employed by attackers to hide their stolen funds.

https://www.coindesk.com/tech/2022/06/16/defi-protocol-inverse-finance-exploited-for-12m/

due to this news INV token trading volume dropped drastically (72%).

whether vulnerabilities to exploits in DeFi make investor funds insecure?  if you have investment in DeFi token please give your opinion!!

Isn't decentralized finance ("De-Fi") about being a trustless system anyone can use worldwide? There's really no need to trust a "De-Fi" platform other than verifying its code and transactions performed on the Blockchain. Remember: "Don't trust, verify". "De-Fi" apps are often hacked due to bugs or vulnerabilities in the code. Sometimes developers are careless to fix such issues, leaving the door open for hackers to siphon as much tokens from the system as possible.

In order to prevent terrible losses, smart contracts should be audited before launching them to public blockchain networks. A well-audited "De-Fi" platform is less likely to be hacked than one that isn't. Nothing is guaranteed to be 100% secure, so it's advised to proceed with caution just in case. Just my thoughts

[Retainly_Collie]

There are many trustworthy things, but there are also so many things that I feel are too bad to only bring defective products. After the last period, many Defi projects are understanding the weakness. And also a big question that I ask is whether it is losing its essence of freedom in this space because there are so many holes as well as mutual control.

[yazher]

DeFi averages only to be reliable in the short term. I've seen how DeFi projects last only a few weeks and at most they will last for a few months before they disappear completely. If DeFi is said to be trustworthy I think it is yes as long as it works but we have to know that DeFi is not for long term.

Yeah right, they are like those coins who turned out to be scams in their later stage because, in reality, they don't have any objectives for the development of their project. Right now they are pulling their capital and the worse part of this bad strategy by those kinds of developers is they will gonna leave their investors alone but give them some false hopes which are not true. That's why investing in such projects is too many risks like those who invested in pump and dump coins, they know what to do and they are just gambling their money.

[Yamifoud]

It is undeniable how these Decentralized finances become distrusted by many because of the scam involvement in the past and the recent days.
We can't blame people to say like that as perhaps, they are the ones also making these things. I actually have no experience with them and that was because I don't have any trust in them since before and their untrustworthiness was been proven several times I have no doubt that their performance is questionable.

[RussianEnglishTranslation]

Why can DeFi not be trusted? Because you lost money farming due to whales dumping on you? Because some platforms exit scammed or were hacked? Because you got liquidated on a loan? You might as well say that the entire banking industry is a scam. I think the solution lies in DeFi with KYC for developers so that they can't scam, and biometric log in for users so there are no hacks. The answer is the internet computer.

[Hold-n-play]

To some extent... new platforms/projects arise such as APT and eventually some of them will gain trust from community

[asriloni]

Defi can't be trusted. You shall be careful with defi. Celcius was being investigated by some countries along with the new case that was coming from the babel finance. DEFI is just a scam. This is not decentralized caused by the owner has control over your money.
You must be careful when facing with the defi. There are bunch of defi were doing shady things. During the bearish market and so many defi facing various liquidity problem and they were suspending their platforms without any notice.

I also heard this news, Celsius is being investigated and that really worries investors who join their staking program. Honestly, I learned a lot from this, I bought $banana at a price of $1.2 but now the price is not up to $0.1, This makes me lose a lot, I don't know when the $banana price will go up again!

I saw that news too and it's very bad for celcius but again this problem was also causing chaos for many people but it seems like the price was going the reverse thing. It looks so weird to see that this token is always going up from time to the time.
Something shady has been played in the background. Your portfolio already recovered again for now. it's almost 1 dollar again

[inanilujimi]

When the market is in a bearish phase there is bad news that hits, it is as if there is an indication that the market is manipulating so that it can immediately fall to the bottom. I feel that any accident that occurs is not purely an accident but is deliberately done to create a prolonged panic.

[Shasha80]

When the market is in a bearish phase there is bad news that hits, it is as if there is an indication that the market is manipulating so that it can immediately fall to the bottom. I feel that any accident that occurs is not purely an accident but is deliberately done to create a prolonged panic.

When a bear market occurs, began to appear bad things, because many people panicked, not only investors who panicked when the bear market.
However, some development teams are also panicking in the face of a bear market, especially if the project they are developing begins to lose interest
and is abandoned by investors. From there, several projects were finally abandoned by the development team and caused the project to be a scam,
and those who are harmed are investors who still believe in the future of the project and ultimately bear the loss, because their money is stuck
in the project.

Not only DeFi projects that experience this, but some NFT projects that are trending and have high popularity end up being scams. Therefore, we have
to be careful in choosing a project for investment. Always do research and analysis to determine which projects are worth buying in a bear market
situation. So there are still good and trustworthy DeFi projects, but finding them is not easy, we have to do proper research and analysis to find out
whether the project can be trusted or not.

[mindrust]

Defl was always Dead on arrival. It was a cool idea for a while but it don’t take much brain power to understand why it wont work. Just like NFT’s and ICO’s, defi was another hard try to give eth a purpose. And just like the other 2, defi also has failed. Bitcoin devs knew this all along so they didn’t implement these stuff (token creation)  on bitcoin. You don’t really need decentralization in everything you use daily. Sometimes it is not a good idea.

[$anounimus$]

whether vulnerabilities to exploits in DeFi make investor funds insecure?  if you have investment in DeFi token please give your opinion!!

Very interesting, I think DeFi has a robust auditing process, and most of the underlying protocols are open source. In addition, each of these projects has taken extraordinary security measures to ensure that user funds are kept safe. If investors can look into the code, they will see whether smart contracts are untrustworthy or not, which means there is never a way to get scammed or lose their assets. The best way to avoid this is to check if your investment advisor has a Business ID number and is therefore regulated by the Financial Markets Authority. because Villains don't seem to be at their wit's end to use certain patterns to trick them.

[South Park]

another bad day for inverse finance, they got exploited for $1.2 million

Exploiters seemed to use a flash loan attack to trick the protocol and steal more than 53 bitcoin, worth $1.1 million, and 10,000 tether (USDT), a stablecoin backed on a 1-1 basis with U.S. dollars. The exploit comes just over two months after attackers stole $15 million worth of cryptocurrencies from Inverse Finance in a similar attack, as previously reported.

Blockchain data apparently shows the exploiters flash-borrowed some 27,000 wrapped bitcoin from lending protocol Aave to conduct the attack. The funds were routed through swap service Curve for various stablecoins before being used to remove DOLA, a stablecoin, from Inverse Finance pools.

An address tagged as “Inverse Finance Exploiter” on blockchain analysis tool Etherscan apparently sent 900 ether, worth $1 million, to privacy mixer Tornado Cash following the exploit, data shows.
Tornado Cash allows users to mask addresses and is sometimes employed by attackers to hide their stolen funds.

https://www.coindesk.com/tech/2022/06/16/defi-protocol-inverse-finance-exploited-for-12m/

due to this news INV token trading volume dropped drastically (72%).

whether vulnerabilities to exploits in DeFi make investor funds insecure?  if you have investment in DeFi token please give your opinion!!

We must remember that this market is supposed to run without trust, so even when it comes to their code as long as it is open source there should be some people out there checking the code to see if there is anything wrong with it and report the bugs they find, since we are seeing instead the opposite, as they are taking advantage of the bugs, then the only thing I can say is that most DeFi platforms are not popular enough to have such following, increasing the risk of a hack substantially.

[Ludmilla_rose1995]

whether vulnerabilities to exploits in DeFi make investor funds insecure?  if you have investment in DeFi token please give your opinion!!

DeFi had and still has the same problems. Anonymity of developers, lack of identification when token is listed on DEX, a lot of vulnerabilities in smart contracts, even in projects with passed audit, and also the possibility of rug pull, when liquidity disappears from some liquidity pool and so-called exit-scam occurs. Even André Cronje, the developer of DeFi projects, says that this industry needs to be regulated, otherwise these problems hindering development will remain and people will perceive DeFi as a high-risk business without regulation.

This article has also explained that self-regulation or being regulated is now important for DeFi

https://cointelegraph.com/news/defi-isn-t-dead-it-just-needs-to-fix-these-3-critical-problems

Until when the market will recover we don't know, the problem is that DeFi is one of the contributors to the disappointment of many crypto investors today. I personally lost more than 90% of the value I invested, this really annoys me personally.

[gunhell16]

Defi can't be trusted. You shall be careful with defi. Celcius was being investigated by some countries along with the new case that was coming from the babel finance. DEFI is just a scam. This is not decentralized caused by the owner has control over your money.
You must be careful when facing with the defi. There are bunch of defi were doing shady things. During the bearish market and so many defi facing various liquidity problem and they were suspending their platforms without any notice.

Well, due to the collapse of most cryptocurrencies in the market as well as celcius has also been affected by this situation, and perhaps one of these things is the collapse of Terra Luna and others that have really surprised big investors in this industry. But I't bit curious about how come that Defi is just a scam Sir? I am not a defi enthusiast, just asking only.

When the market is in a bearish phase there is bad news that hits, it is as if there is an indication that the market is manipulating so that it can immediately fall to the bottom. I feel that any accident that occurs is not purely an accident but is deliberately done to create a prolonged panic.

In such circumstances we expect that there will actually be those who manipulate the market, whether it is rising or falling and there is only one thing I know, and it is under those who manipulate the large holding cryptocurrency tokens. And these manipulators are many in the market.

[danherbias07]

The hype and the name made it look good by putting "decentralized" in it. It's not a new trick as it happened years ago with ICOs using smart contracts.
Some of them are gone without even offering a good explanation about what the crap happened and we can see that now with many DeFi projects that is being created. Not just in the lending section, but also in the gaming industry.
The records are legitimate as decentralized using the blockchain but what about the other parts of it? Going thru cex, swap services, and dex is where I see where the big holes at and they cannot manage to secure it.

[Abiky]

Why can DeFi not be trusted? Because you lost money farming due to whales dumping on you? Because some platforms exit scammed or were hacked? Because you got liquidated on a loan? You might as well say that the entire banking industry is a scam. I think the solution lies in DeFi with KYC for developers so that they can't scam, and biometric log in for users so there are no hacks. The answer is the internet computer.

A "De-Fi" platform complying with KYC/AML laws would no longer be decentralized. That's because a third party would be required to collect all of your personally-identifiable information to share it with the government. Besides, KYC will defeat crypto/Blockchain tech's intended purpose (which is banking for the unbanked). If we want decentralized finance to work, KYC must be out of the system for good. Hacks, theft, and other undesired situations will always happen especially when there are millions (if not, billions) of dollars on the line.

It's up to you to inspect the code in order to determine if the "De-Fi" platform's smart contract is as secure and reliable as it claims to be. That is if you have CS knowledge or are a security expert. Developers can easily send their smart contracts for auditing if they're interested in attracting the masses to their project. The whole space is just starting to blossom, so I'd say we should give "De-Fi" more time to mature enough for mainstream use. Just my opinion

[South Park]

Why can DeFi not be trusted? Because you lost money farming due to whales dumping on you? Because some platforms exit scammed or were hacked? Because you got liquidated on a loan? You might as well say that the entire banking industry is a scam. I think the solution lies in DeFi with KYC for developers so that they can't scam, and biometric log in for users so there are no hacks. The answer is the internet computer.

If you want those measures then you should just use banks and be done with this market, biometrics are being pushed as an alternative to passwords but what good can biometrics be since you cannot change them? Once it is leaked out then all your accounts will be at risk and there will not be a way to secure your funds anymore unless passwords are allowed too, in which which case why use biometrics at all if we still need passwords?

[Ludmilla_rose1995]

Why can DeFi not be trusted? Because you lost money farming due to whales dumping on you? Because some platforms exit scammed or were hacked? Because you got liquidated on a loan? You might as well say that the entire banking industry is a scam. I think the solution lies in DeFi with KYC for developers so that they can't scam, and biometric log in for users so there are no hacks. The answer is the internet computer.

If you want those measures then you should just use banks and be done with this market, biometrics are being pushed as an alternative to passwords but what good can be biometrics since you cannot change them? Once it is leaked out then all your accounts will be at risk and there will not be a way to secure your funds anymore unless passwords are allowed too, in which which case why use biometrics at all if we still need passwords?

right, why do biometrics if logging in with a password is still available!

this is still bothering me.. if defi requires KYC does it deserve to be called decentralized again? defi is made to fight against 3rd party (bank) system which requires KYC on every user, I think in the market there are many defi platforms, but only a few are honest.

[leea-1334]

@RussianEnglish: DeFi cannot be trusted because they lie when they say decentralized,,, Who runs the network, who wrote the code, who hosts the servers and backend? Who provides liquidity?

Biometrics? You want more centralization and lack of privacy? Do you think that stops rug pulls? Hacks are only a small percentage of lost money. Scams and rug pulls and exploits by themselves are the majority of DeFi losses.

[justdimin]

@RussianEnglish: DeFi cannot be trusted because they lie when they say decentralized,,, Who runs the network, who wrote the code, who hosts the servers and backend? Who provides liquidity?

Biometrics? You want more centralization and lack of privacy? Do you think that stops rug pulls? Hacks are only a small percentage of lost money. Scams and rug pulls and exploits by themselves are the majority of DeFi losses.

This is the biggest problem when it comes to 99% of the defi projects. I have been part of too many last year, I am a content writer so I didn't really have too much say in it but even the ones that tried to be decentralized, had to do some centralized stuff to make it work or otherwise it would have gone down.

Even the fact that there are people who are spending millions to do marketing for a project is good enough to realize it is not decentralized. Have you seen satoshi spend money on marketing for bitcoin? All in all, I agree that defi projects should be approached with a grain of salt, there could be a few decentralized like cake, but majority is not decentralized at all.

[Teraboy]

Defi can't always be trusted by so many bad stories happened with the defi these days. I meant if we must aware with the fact that if defi can't sustain due to the various reason. Celcius has been giving us a very good lesson even a big defi can't even survive when it was coming to the margin call and low liquidity caused by being drained by someone who has been borrowing bunch of liquidity from the defi itself. I can say that if defi can't fully be trusted but trusting defi is still good for now.

[BuNga_cute]

Defi can't always be trusted by so many bad stories happened with the defi these days. I meant if we must aware with the fact that if defi can't sustain due to the various reason. Celcius has been giving us a very good lesson even a big defi can't even survive when it was coming to the margin call and low liquidity caused by being drained by someone who has been borrowing bunch of liquidity from the defi itself. I can say that if defi can't fully be trusted but trusting defi is still good for now.

It's true that in a bear market situation like this it seems too risky to trust DeFi, especially since crypto trends often change. Many investors experience
bad things when investing in DeFi today, because investing in bear markets is very risky. So we really should invest safely by only trusting Bitcoin
for now, don't be too hasty in investing in DeFi in a bear market situation. It's better if we prioritize investing in Bitcoin and for DeFi I suggest for now
we can just monitor its movements. Even because the bear market has been going on since the beginning of this year, the majority of DeFi have not
shown satisfactory performance so far. So indeed in a bear market situation we have to be more careful in making decisions, don't let us regret making
the wrong decision. It's better to wait for the bull market to come if we want to start trusting DeFi again, because during a bull market the chances of
DeFi pumping are much bigger.

[leea-1334]

@RussianEnglish: DeFi cannot be trusted because they lie when they say decentralized,,, Who runs the network, who wrote the code, who hosts the servers and backend? Who provides liquidity?

Biometrics? You want more centralization and lack of privacy? Do you think that stops rug pulls? Hacks are only a small percentage of lost money. Scams and rug pulls and exploits by themselves are the majority of DeFi losses.

This is the biggest problem when it comes to 99% of the defi projects. I have been part of too many last year, I am a content writer so I didn't really have too much say in it but even the ones that tried to be decentralized, had to do some centralized stuff to make it work or otherwise it would have gone down.

Even the fact that there are people who are spending millions to do marketing for a project is good enough to realize it is not decentralized. Have you seen satoshi spend money on marketing for bitcoin? All in all, I agree that defi projects should be approached with a grain of salt, there could be a few decentralized like cake, but majority is not decentralized at all.

I get that projects need to be centralized and need to do marketing,,, that is absolutely fine, but no need then go about and say decentralized this and defi and gamefi that and everything.

And another thing no need to lie about needing money for development. Bitcoin and Ethereum all started out developing without money so we know that is bullshit.

The problem I have is projects raise money to do 99% marketing and to buy coke to snort  

[LUCKMCFLY]

I'm just saying something, if DEFI can survive this market crash it is because it can cope very well with everything that its ecosystem represents, now, when the metaverses begin it is obvious that ecosystems based on Defi will have a great respite because they will enter a universe where many will have access and will know its concept, so on this side I hope that Defi does survive, I hope that BTC does not continue to fall so that it gives a good chance to grow to nascent projects, and strengthen those that are already developed.

[AmoreJaz]

Defi can't always be trusted by so many bad stories happened with the defi these days. I meant if we must aware with the fact that if defi can't sustain due to the various reason. Celcius has been giving us a very good lesson even a big defi can't even survive when it was coming to the margin call and low liquidity caused by being drained by someone who has been borrowing bunch of liquidity from the defi itself. I can say that if defi can't fully be trusted but trusting defi is still good for now.

any platform or network can't be trusted as they are vulnerable to either internal attacks or outside attacks. the security depends on how the team will continue to update their security protocols as hacking softwares are getting sophisticated everyday. just like any new network technology, defi can't avoid these attacks. hence, customers should always be cautious in storing their funds or managing their funds via defi platforms.

[South Park]

Why can DeFi not be trusted? Because you lost money farming due to whales dumping on you? Because some platforms exit scammed or were hacked? Because you got liquidated on a loan? You might as well say that the entire banking industry is a scam. I think the solution lies in DeFi with KYC for developers so that they can't scam, and biometric log in for users so there are no hacks. The answer is the internet computer.

If you want those measures then you should just use banks and be done with this market, biometrics are being pushed as an alternative to passwords but what good can be biometrics since you cannot change them? Once it is leaked out then all your accounts will be at risk and there will not be a way to secure your funds anymore unless passwords are allowed too, in which which case why use biometrics at all if we still need passwords?

right, why do biometrics if logging in with a password is still available!

this is still bothering me.. if defi requires KYC does it deserve to be called decentralized again? defi is made to fight against 3rd party (bank) system which requires KYC on every user, I think in the market there are many defi platforms, but only a few are honest.

It is not surprising at all that those supposed decentralized networks are in fact centralized as this is something which happens with regular cryptocurrencies as well, as an example out of the current top 10 coins 5 are centralized and maybe there are a few more which are centralized too but I do not know enough about them to know for sure, so it is not surprising this is happening as well with the DeFi coins, however this can be used as a measure stick to know which DeFi coins are centralized or not, since if a DeFi coin was really decentralized then they will have no reason to ask for your personal information at all.

[ilovealtcoins]

another bad day for inverse finance, they got exploited for $1.2 million

Exploiters seemed to use a flash loan attack to trick the protocol and steal more than 53 bitcoin, worth $1.1 million, and 10,000 tether (USDT), a stablecoin backed on a 1-1 basis with U.S. dollars. The exploit comes just over two months after attackers stole $15 million worth of cryptocurrencies from Inverse Finance in a similar attack, as previously reported.

Blockchain data apparently shows the exploiters flash-borrowed some 27,000 wrapped bitcoin from lending protocol Aave to conduct the attack. The funds were routed through swap service Curve for various stablecoins before being used to remove DOLA, a stablecoin, from Inverse Finance pools.

An address tagged as “Inverse Finance Exploiter” on blockchain analysis tool Etherscan apparently sent 900 ether, worth $1 million, to privacy mixer Tornado Cash following the exploit, data shows.
Tornado Cash allows users to mask addresses and is sometimes employed by attackers to hide their stolen funds.

https://www.coindesk.com/tech/2022/06/16/defi-protocol-inverse-finance-exploited-for-12m/

due to this news INV token trading volume dropped drastically (72%).

whether vulnerabilities to exploits in DeFi make investor funds insecure?  if you have investment in DeFi token please give your opinion!!

Defini is going through a hard time at the moment, but it won't die, that's a part of the story of crypto, it has to go through hardships to become better and more mature. In many ways, Defi is like a bank in our lives, except that it is decentralized rather than centralized like a bank. defi is facing a lot of big problems like getting hacked but I believe it will recover in the future.

[Abiky]

any platform or network can't be trusted as they are vulnerable to either internal attacks or outside attacks. the security depends on how the team will continue to update their security protocols as hacking softwares are getting sophisticated everyday. just like any new network technology, defi can't avoid these attacks. hence, customers should always be cautious in storing their funds or managing their funds via defi platforms.

Exactly. Nothing is 100% secure in this world. There will always be room for failure. It'll be up to developers and security researchers to constantly update software algorithms in order to stay one step ahead of the latest threats. "De-Fi" platforms are often open source, so it's easy to identify bugs and/or flaws in the system. Some platforms are more secure than others due to rigorous testing by developers, but none of them are immune from external attacks.

You'd have to keep in mind that using "De-Fi" platforms is entirely your responsibility. That's because of the way they're designed (no middleman, only you control your crypto funds with a private key or seed). They're not like banks which are regulated and monitored by the government. Users of "De-Fi" platforms must first do their own research before making any deposit. If you want to play it safe, just spread your investment across multiple "De-Fi" platforms in order to minimize risks of loss. I'd trust "De-Fi" more than banks, simply because it gives me power/freedom to do anything I want with my money. But not everyone will find "De-Fi" attractive. Who knows what the future will hold for this emerging industry? Just my opinion

[Ludmilla_rose1995]

****

Defini is going through a hard time at the moment, but it won't die, that's a part of the story of crypto, it has to go through hardships to become better and more mature. In many ways, Defi is like a bank in our lives, except that it is decentralized rather than centralized like a bank. defi is facing a lot of big problems like getting hacked but I believe it will recover in the future.

emm, I think what you said is quite correct, we are actually still very early in adopting the concept of DeFi. there are still a lot of adjustments that need to be fixed here and there, but DeFi will be better if the tokens in circulation are stable-token so that users don't lose out because of price fluctuations that occur inside, and the locking of investors' funds must also be fixed, so that investors early on when doing price manipulation tricks by buying or selling lots of the DeFi tokens they bought very early!

[o48o]

I find it quite funny that this topic is trending at the same time when people are asking that should they avoid CEX:es because of FTX and are saying we should use DEX:es.
But answering to this question: Word "trust" isn't something that has to be absolute. We know there are risks in both and this is why the prices move. There's ton of risk of many kind involved in investing cryptos / using cryptos.

However i want to support DEXes. I am not keeping much of my money in liquidity pools or something like that. I keep list on which wallet is connected to where so i don't keep too much money on any wallet that could be compromised

[coinerer]

defi was once a hype and almost all projects developed in Defi were considered trustworthy and everyone invested more or less here. But now Defi is not considered very trustworthy.  Because many attacking and hacking incidents are happening in Defi now, Defi should be used with caution. I personally don't use Defi now and don't trust Defi very much

[|MINER|]

defi was once a hype and almost all projects developed in Defi were considered trustworthy and everyone invested more or less here. But now Defi is not considered very trustworthy.  Because many attacking and hacking incidents are happening in Defi now, Defi should be used with caution. I personally don't use Defi now and don't trust Defi very much

Both defi and cefi in cryptocurrency should not be considered 100% trust worthy, and shouldn't invest all fund in one . Because risk is every here if wanna trust to cefi then you should also remember the previous incident and also same goes to the defi . So I think the best would be to split all the funds and invest them everywhere as per a good strategy with remember that's " invest as much as you afford to loose".

[vv181]

~we are actually still very early in adopting the concept of DeFi. there are still a lot of adjustments that need to be fixed here and there,

One thing lacking about Defi is the upper layer of the ecosystem to access Defi is not wholly "decentralized". If the platform exists over a somewhat less decentralized coin, it reduces the term of decentralized itself. Unfortunately, I don't see many majority Defi platform are concerned about it.

DeFi will be better if the tokens in circulation are stable-token so that users don't lose out because of price fluctuations that occur inside, and the locking of investors' funds must also be fixed, so that investors early on when doing price manipulation tricks by buying or selling lots of the DeFi tokens they bought very early!

If we are sticking to the "Defi" term, relying on stablecoin makes it worse. Besides, if the pool itself has a few selections of token availability, and especially if it's only a stablecoin, the platform will be lacking any interest due to a lack of fluctuation within the price. Plus, early investor deserved it simply because they are being early. If it is still prone to manipulation, the problem is not on the investor side.

[Abiky]

I find it quite funny that this topic is trending at the same time when people are asking that should they avoid CEX:es because of FTX and are saying we should use DEX:es.
But answering to this question: Word "trust" isn't something that has to be absolute. We know there are risks in both and this is why the prices move. There's ton of risk of many kind involved in investing cryptos / using cryptos.

However i want to support DEXes. I am not keeping much of my money in liquidity pools or something like that. I keep list on which wallet is connected to where so i don't keep too much money on any wallet that could be compromised

DEXs have so many limitations which make them look inferior to their centralized counterparts. Why would people use something that's slow, has low liquidity, and requires some level of technical knowledge (especially keeping self-custody of your coins)? We can't think about DEXs replacing CEXs if such limitations exist. While developers have been improving DEXs over time, they still have a load road ahead before they become mature for mainstream use.

At least, we're not tied to a single option. We have many alternatives to choose from, so it's likely crypto will move on from the FTX collapse and emerge bigger and stronger than ever. Who knows what the future holds for crypto/Blockchain tech? Just my thoughts

[Jaered]

Decentralized Finance is one hell of a ride in crypto. It is the Wild Wild West of the Wild West. I was recently hacked and $5000 worth of tokens stolen from my staked wallet. While I may take much of the blame, I still think the DeFi protocol Crystl Finance has to be blamed

[shavebob77]

Yes,as long as we implement self-custody education and anti-scam ways,awareness is key.

[Xal0lex]

DEXs have so many limitations which make them look inferior to their centralized counterparts. Why would people use something that's slow, has low liquidity, and requires some level of technical knowledge (especially keeping self-custody of your coins)? We can't think about DEXs replacing CEXs if such limitations exist. While developers have been improving DEXs over time, they still have a load road ahead before they become mature for mainstream use.

At least, we're not tied to a single option. We have many alternatives to choose from, so it's likely crypto will move on from the FTX collapse and emerge bigger and stronger than ever. Who knows what the future holds for crypto/Blockchain tech? Just my thoughts

DEX has never been a full-fledged replacement for CEX. DEXs risk becoming fully regulated in the future. If we look at Uniswap and their EIP-1153, these fears are not unfounded. Read the post on Twitter at https://twitter.com/adamscochran/status/1602087890686775296. It says that Uniswap may launch some KYC in its next iteration, its fourth. If that happens, it will completely overturn all the usual ideas about DEX.

[o48o]

DEXs have so many limitations which make them look inferior to their centralized counterparts. Why would people use something that's slow, has low liquidity, and requires some level of technical knowledge (especially keeping self-custody of your coins)? We can't think about DEXs replacing CEXs if such limitations exist. While developers have been improving DEXs over time, they still have a load road ahead before they become mature for mainstream use.
-cut-

Right, there indeed is the learning curve for unneccearily complicatez tech when it comed to tech but se can Day this for most things in crypto including wallets. Things have been changing for the better. Before metamask it would have been nearly impossible for adoption, and whole metamask has become better, it's still suspicious and unfamiliar to regular people.

DEX has never been a full-fledged replacement for CEX. DEXs risk becoming fully regulated in the future. If we look at Uniswap and their EIP-1153, these fears are not unfounded. Read the post on Twitter at https://twitter.com/adamscochran/status/1602087890686775296. It says that Uniswap may launch some KYC in its next iteration, its fourth. If that happens, it will completely overturn all the usual ideas about DEX.

Dexes will become regulated there's no question about that. That however doesn't need to take away decentralized tech under it.

[kzkazu]

Defi can't always be trusted by so many bad stories happened with the defi these days. I meant if we must aware with the fact that if defi can't sustain due to the various reason. Celcius has been giving us a very good lesson even a big defi can't even survive when it was coming to the margin call and low liquidity caused by being drained by someone who has been borrowing bunch of liquidity from the defi itself. I can say that if defi can't fully be trusted but trusting defi is still good for now.

No exchange can be trusted. DeFi cannot be trusted, it does not have complete security guarantees. Although the defi project provides anonymity, it is still risky and vulnerable to hackers.

[Semar Mesem]

Yes,as long as we implement self-custody education and anti-scam ways,awareness is key.

That's right, always be vigilant and don't easily believe in a Defi project that doesn't have a reputation, let alone haven't passed an audit so that it makes us regret it, I think Defi still has good prospects in the future so we should invest money in many Defi projects.

[goldkingcoiner]

The only reason why Defi is acceptable in the eyes of most coiners is the fact that its so easy to use to swap for wrapped tokens. That way you can keep your funds out of an exchange and be completely self reliant. No third party is involved in your trades or your wallet holdings.

The bad news is that the underlying blockchain (BEP20 or ERC20 for example) is not as trustworthy or reliable as Bitcoin blockchain. And obviously it is not one and the same thing.

Its like giving someone a piece of paper with "1 Bitcoin" written on it and the person reassures you that that paper can be traded in for 1 Bitcoin at any time, as the piece of paper itself has an underlying Bitcoin reserve value. But its still not 1 Bitcoin. Just a voucher for 1 Bitcoin.

Should the underlying DeFI's blockchain fail for some reason, your wrapped token will become worthless and nobody will trade you 1 Bitcoin for it....

So whether or not you want to trust Defi is up to you. But one thing is certain: DeFi itself is trustless and verifiable. Just not without risk, depending on which blockchain you use.

[Abiky]

The only reason why Defi is acceptable in the eyes of most coiners is the fact that its so easy to use to swap for wrapped tokens. That way you can keep your funds out of an exchange and be completely self reliant. No third party is involved in your trades or your wallet holdings.

The bad news is that the underlying blockchain (BEP20 or ERC20 for example) is not as trustworthy or reliable as Bitcoin blockchain. And obviously it is not one and the same thing.

Its like giving someone a piece of paper with "1 Bitcoin" written on it and the person reassures you that that paper can be traded in for 1 Bitcoin at any time, as the piece of paper itself has an underlying Bitcoin reserve value. But its still not 1 Bitcoin. Just a voucher for 1 Bitcoin.

Should the underlying DeFI's blockchain fail for some reason, your wrapped token will become worthless and nobody will trade you 1 Bitcoin for it....

So whether or not you want to trust Defi is up to you. But one thing is certain: DeFi itself is trustless and verifiable. Just not without risk, depending on which blockchain you use.

That's certainly true, mate. Most underlying blockchain networks aren't as decentralized as one thought they would be. They're extremely vulnerable to hacks and/or manipulation because of their focus on performance instead of security/reliability. There's no guarantee your balance will always be there on a "De-Fi" platform of your choosing whose underlying blockchain network is centralized. While Ethereum is the most decentralized blockchain network after Bitcoin, that doesn't mean it's perfect.

You're going to have to decide whenever you'd want to put all of your money on "De-Fi" or banks. The latter is a much safer option, although rates are lower than those provided by "De-Fi" platforms. At least, we have an alternative to traditional banking. As long as we have Bitcoin, nothing else matters. Just my opinion

[Jackl87]

another bad day for inverse finance, they got exploited for $1.2 million. due to this news INV token trading volume dropped drastically (72%).
whether vulnerabilities to exploits in DeFi make investor funds insecure?  
if you have invested in DeFi token please give your opinion!

It is not a surprise that the price of that token drops if their website and services have been hacked or exploited. I don't really know how exactly the exploit worked that got those hackers those 1,2 Million$ but in the end it doesn't matter to me. For me Defi is still the future of finance and one of the driving forces for crypto adoption becaues decentralization is the main thing why Bitcoin (and therefore the whole crypto space) was invented in the first place.
I have some funds on a yield farm, that is also audited, but i am also aware that an audit does not mean that my funds are 100% safe all the time. As long as it is programmed, it can be hacked.

[o48o]

Finding loopholes in these smart contracts is not easy and spending about 900 Ethereum trying to exploit them suggests that people have a connection to the smart contract developers, which ultimately proves that the word “decentralized finance” is for media propaganda as these platforms are completely centralized.
-cut-

Ok, maybe i am losing something in here in translation but please explain what you mean, because i don't get how you took that leap. If people (i am assuming by people you mean hackers) had a connection to the smart contract developers, why would they need to use 900 eth for exploit? And how in earth one exploit would make them all centralized?

Or if you are using argument that "because of PoS it's centralized", that wouldn't have anything to do with this exploit either, right?

[AmoreJaz]

another bad day for inverse finance, they got exploited for $1.2 million. due to this news INV token trading volume dropped drastically (72%).
whether vulnerabilities to exploits in DeFi make investor funds insecure?  
if you have invested in DeFi token please give your opinion!

It is not a surprise that the price of that token drops if their website and services have been hacked or exploited. I don't really know how exactly the exploit worked that got those hackers those 1,2 Million$ but in the end it doesn't matter to me. For me Defi is still the future of finance and one of the driving forces for crypto adoption becaues decentralization is the main thing why Bitcoin (and therefore the whole crypto space) was invented in the first place.
I have some funds on a yield farm, that is also audited, but i am also aware that an audit does not mean that my funds are 100% safe all the time. As long as it is programmed, it can be hacked.

high likely that it is an inside job. the defi system itself is great, but it is the developers that are making this system full of fraudulent activities.most of these hacks i believe are inside job. remember, mostly are anonymous projects, so hard to trace who is doing such kind of move. the devs pocketed already what they need so they won't care if their token will go down hard or won't survive. this is the problem of most defi investors, they have no clue if the platform will survive long or not.

[Xal0lex]

That's certainly true, mate. Most underlying blockchain networks aren't as decentralized as one thought they would be. They're extremely vulnerable to hacks and/or manipulation because of their focus on performance instead of security/reliability. There's no guarantee your balance will always be there on a "De-Fi" platform of your choosing whose underlying blockchain network is centralized. While Ethereum is the most decentralized blockchain network after Bitcoin, that doesn't mean it's perfect.

You're going to have to decide whenever you'd want to put all of your money on "De-Fi" or banks. The latter is a much safer option, although rates are lower than those provided by "De-Fi" platforms. At least, we have an alternative to traditional banking. As long as we have Bitcoin, nothing else matters. Just my opinion

Are there still really decentralized networks in DeFi? In my opinion, this is already more fiction than truth. In most protocols, the main supply of tokens is owned by a few addresses who can control the protocol, or manipulate the prices. Anything PoS is no longer decentralized. In addition, PoS is very prone to all kinds of attacks and exploits, which happen almost every day.

[laylagur]

DeFi platforms are still subject to hacks and attacks, even after passing security audits. Some teams seek to secure user funds or recover losses, but there is no complete guarantee of security. As DeFi projects increase, there will also be more hacks despite advances in technology and security, so either take the risk or don't invest.

Why are DEFI projects frequently visited by hackers? The audit has also passed, why are there still loopholes? Why are there no white hats? It's all about hackers stealing user funds.

[Abiky]

Are there still really decentralized networks in DeFi? In my opinion, this is already more fiction than truth. In most protocols, the main supply of tokens is owned by a few addresses who can control the protocol, or manipulate the prices. Anything PoS is no longer decentralized. In addition, PoS is very prone to all kinds of attacks and exploits, which happen almost every day.

I think the only truly decentralized "De-Fi" network is Ethereum Classic as it's the only smart contracts platform that uses good-old PoW. The rest are just centralized shitcoins with PoS as their consensus layer. It's a pity to see many "De-Fi" platforms sacrificing their decentralization just to obtain performance and cost-efficiency. They've decided to please the government by doing the switch to PoS without considering the long-term risks of doing so. With a single point of failure, we should expect more losses in the long run.

I'd only trust "De-Fi" platforms that are truly decentralized and have been tried and tested by the developers. As I've said before, ETC is a good option. It's just that dApps are virtually non-existent on it. Maybe someday developers will have a look at it? Just my thoughts

[zasad@]

Are there still really decentralized networks in DeFi? In my opinion, this is already more fiction than truth. In most protocols, the main supply of tokens is owned by a few addresses who can control the protocol, or manipulate the prices. Anything PoS is no longer decentralized. In addition, PoS is very prone to all kinds of attacks and exploits, which happen almost every day.

I think the only truly decentralized "De-Fi" network is Ethereum Classic as it's the only smart contracts platform that uses good-old PoW. The rest are just centralized shitcoins with PoS as their consensus layer. It's a pity to see many "De-Fi" platforms sacrificing their decentralization just to obtain performance and cost-efficiency. They've decided to please the government by doing the switch to PoS without considering the long-term risks of doing so. With a single point of failure, we should expect more losses in the long run.

I'd only trust "De-Fi" platforms that are truly decentralized and have been tried and tested by the developers. As I've said before, ETC is a good option. It's just that dApps are virtually non-existent on it. Maybe someday developers will have a look at it? Just my thoughts

I think that the work of smart contracts does not depend on the algorithm of the coin. If hackers find vulnerabilities in the smart contract, then you will also lose your investment. The average user will not get their money back in most cases, so I always say the benefit of earning 10-15% per year does not cover the risk of losing 100% of the investment.

[doomloop]

I think that the work of smart contracts does not depend on the algorithm of the coin. If hackers find vulnerabilities in the smart contract, then you will also lose your investment. The average user will not get their money back in most cases, so I always say the benefit of earning 10-15% per year does not cover the risk of losing 100% of the investment.

The good thing you could do with this is not to put all your money into a single thing. If you do that then you are right that it will not be recovered and you will lose all your money, but if you do not do that and instead you put like 5% of your money into a single thing then the worst case would be losing 5% of your portfolio, the other 95% will be safe.

The exception being bitcoin because investing into bitcoin is a good way of making money when bull run comes, but for all the other defi type of stuff, you should have bunch of diversification so that you wouldn't lose all your money in a single day. That's my understanding though, maybe it won't work that well.

[PhygiCards]

Yes,as long as we implement self-custody education and anti-scam ways,awareness is key.

That's right, always be vigilant and don't easily believe in a Defi project that doesn't have a reputation, let alone haven't passed an audit so that it makes us regret it, I think Defi still has good prospects in the future so we should invest money in many Defi projects.

DEFI protocols emerge in endlessly, especially in the bear market of 2022, various hackers and various loopholes continue to appear in everyone's field of vision and news. What I want to say is that there are so many DEFI protocols and various tokens, and you need to find out by yourself Discrimination, of course, the greater the risk, the higher the return. This is entirely up to personal decision. Of course, apart from hackers being an important role of DEFI, I think project founders are also an important factor, because many founders have evil intentions.

[Abiky]

I think that the work of smart contracts does not depend on the algorithm of the coin. If hackers find vulnerabilities in the smart contract, then you will also lose your investment. The average user will not get their money back in most cases, so I always say the benefit of earning 10-15% per year does not cover the risk of losing 100% of the investment.

Of course. Smart contract vulnerabilities would bring a lot of risks to "De-Fi" users. But the situation becomes worse if the underlying Blockchain network's consensus algorithm is centralized. If we want full decentralization and security/reliability, we're going to need to focus on all aspects of the blockchain (both the consensus layer and the smart contract itself).

Honestly, I don't think any other smart contract platform is as reliable and decentralized as Ethereum. That doesn't mean "De-Fi" apps built on ETH won't have their flaws, but at least they will be much safer than those built on rival chains such as BNB or Solana. Blockchain tech is all about being trustless, so people would just need to verify the code and check for transactions just to be safe. Just my opinion

[nakamura12]

Decentralized Finance is one hell of a ride in crypto. It is the Wild Wild West of the Wild West. I was recently hacked and $5000 worth of tokens stolen from my staked wallet. While I may take much of the blame, I still think the DeFi protocol Crystl Finance has to be blamed

That's because a hacker just found a vulnerability from that DeFi you invested although there could be other DeFi that can be trusted but the question is, How to find that DeFi where we can trust?. I am sure you know that there are different DeFi projects that pop-up out of nowhere and each of us have our own specific ways on what to trust like a DeFi platform that is truly decentralized rather than being a centralized platform.

[bhooscream]

another bad day for inverse finance, they got exploited for $1.2 million. due to this news INV token trading volume dropped drastically (72%).

whether vulnerabilities to exploits in DeFi make investor funds insecure?  

if you have invested in DeFi token please give your opinion!

For certain big projects, DeFi maybe still able to compete with other crypto business, but, not all DeFi projects will be able to survive during this bearish market. Moreover, DeFi era seems ended after some times and we will possibly find or meet with other hype project types again later. So, I am not willing to choose investment in DeFi again right now because it is too risky. Although we don't know what will happen to DeFi era in the next bullish moment, we can see and consider if this sis till profitable or not for certain DeFi tokens or coins. Exactly, this will also depend on how teams are developing their projects to be up-to-date and accepted by the global communities widely and generally.

[JeffBrad12]

I'd say just try using defi that's actually have large support from large exchange behind like pancakeswap, I don't see any point of trying to make profit off staking in defi meanwhile you could easily lost your money and that's not even because you're making mistake but just because the platform is broken.
Honestly if it's that easy to lose money while your token gets locked, it shouldn't even be called investments, it's gambling.

[DOH!]

Defi can't always be trusted by so many bad stories happened with the defi these days. I meant if we must aware with the fact that if defi can't sustain due to the various reason. Celcius has been giving us a very good lesson even a big defi can't even survive when it was coming to the margin call and low liquidity caused by being drained by someone who has been borrowing bunch of liquidity from the defi itself. I can say that if defi can't fully be trusted but trusting defi is still good for now.

No exchange can be trusted. DeFi cannot be trusted, it does not have complete security guarantees. Although the defi project provides anonymity, it is still risky and vulnerable to hackers.

Yes, of course defi can get hacked and lose money, so what about cefi? you will go there and crash like FTX. And Cefi has no hacking/manipulation problems...? lol, I think Defi is still in an important niche for finance going forward and its adoption is still on free market demand that will be decided by the user or over time and other characteristics it will also be changed the way it is applied but it will exist in its own way.