What's your thoughts on DeFi fund losses? - page 2.

mu_enrico

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Quote from: serjent05 on July 04, 2020, 06:36:20 PM

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

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

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

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Quote from: mu_enrico on July 03, 2020, 08:50:29 AM

Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

What's your thoughts on this?

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

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

Quote from: mu_enrico on July 03, 2020, 08:50:29 AM

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

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

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Quote from: devil2man on July 04, 2020, 10:20:02 AM

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

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

devil2man

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

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Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

bigcash2011

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Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

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Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

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

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Quote from: Horionion on July 04, 2020, 12:31:45 AM

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

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

batang_bitcoin

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

PerfectCircle

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

gaston castano

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

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Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

Horionion

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

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Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

hatshepsut93

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Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

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

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Quote from: Chuky92 on July 03, 2020, 09:47:45 AM

Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

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

Chuky92

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Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

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Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

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

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

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Quote from: mu_enrico on July 03, 2020, 08:50:29 AM

Quote from: Gunday_07 on July 03, 2020, 07:29:06 AM

What's your thoughts on this?

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

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

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

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