Sirwin
Sirwin

The Tired, Repeat Vulnerability of DeFi


For all the belly-aching about crypto regulation, DeFi's aren't doing themselves any favors continuing to be hackathon train wrecks. Now, the latest victim is Curve

Curve has been well-known in digital currency circles as both a swap tool, liquidity pool for investors, and overall farm partner. Many will remember CRV popping up and populating a good number of staking pools in Harvest (FARM), for example. The operation, unfortunately, was already running on a leveraged plan, which now seems to be in jeopardy given the lost funds to last week's hack. However, the bigger issue is, these wonderful defi resources just keep getting sacked like a City of Rome broken record (Friday night Visigoth special, main street sacking on now!).

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It's very apparent, DeFi's need to seriously up their security game to be relied on for anything substantial going forward. There have been far too many hacks, too many bad backdoors left open, and too many instances of poor code work not maintained. It's not as if defi hacking is a new thing. The hacks are so common now, there are even web pages describing the most common tools and approaches, similar to a basic IT security 101 class textbook.

This has been going on since 2020, and the fact that many DeFi's are still not dealing with their security side well only gives continue ammo for government regulators to say, "See, I told you they needed to be controlled!" Disregard that 99.9% of regulators will have no idea how to run a DeFi much less protect it, they will be the first to tout regulation expansion is needed.

Now, most will immediately say the very nature of DeFi means that it is not centrally controlled. Okay, fine, but that doesn't mean it shouldn't be aggressively protected. If crypto proponents want the digital world to continue freely, then some effort has to be put into making DeFi's reliably stable and protected, similar to banking systems, for the most part. Otherwise, the old wild, wild west attitude might work for a few hundred dollar of profit, and even some high risk de-gen types, but the mass adoption isn't going to happen anytime soon.

 

 

 

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WinterYeti
WinterYeti

A professional freelance writer for the last 20 years and a budding photographer by hobby.


The Intersect of Crypto Musings & Consumer Impacts
The Intersect of Crypto Musings & Consumer Impacts

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