Can DeFi still be trusted?? - page 3.

Abiky

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Quote from: RussianEnglishTranslation on June 20, 2022, 12:11:19 PM

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

danherbias07

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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.

gunhell16

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Quote from: asriloni on June 18, 2022, 03:52:04 AM

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.

Quote from: inanilujimi on June 20, 2022, 09:32:19 PM

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.

Ludmilla_rose1995

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Quote from: Xal0lex on June 19, 2022, 05:03:22 PM

Quote from: Ludmilla_rose1995 on June 17, 2022, 02:21:48 PM

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

Quote

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.

South Park

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Quote from: Ludmilla_rose1995 on June 17, 2022, 02:21:48 PM

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

Quote

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.

$anounimus$

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Quote from: Ludmilla_rose1995 on June 17, 2022, 02:21:48 PM

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.

mindrust

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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.

Shasha80

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Quote from: inanilujimi on June 20, 2022, 09:32:19 PM

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.

inanilujimi

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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.

asriloni

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Quote from: Ludmilla_rose1995 on June 18, 2022, 08:24:08 PM

Quote from: asriloni on June 18, 2022, 03:52:04 AM

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

Hold-n-play

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

RussianEnglishTranslation

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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.

Yamifoud

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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.

yazher

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Quote from: asyakashi on June 19, 2022, 11:26:09 AM

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.

Retainly_Collie

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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.

Abiky

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Quote from: Ludmilla_rose1995 on June 17, 2022, 02:21:48 PM

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

Quote

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 Grin

Xal0lex

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Quote from: Ludmilla_rose1995 on June 17, 2022, 02:21:48 PM

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.

isaac_clarke22

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Quote from: Ludmilla_rose1995 on June 17, 2022, 02:21:48 PM

~

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.

lalabotax

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Quote from: Ludmilla_rose1995 on June 17, 2022, 02:21:48 PM

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.

WeedGoW

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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?

Topic: Can DeFi still be trusted?? - page 3. (Read 792 times)