In crypto, at some point, there’s a high probability that one of your investments is going to “get rekt.”
I know it has happened to me, most recently, when some assets I had deposited as liquidity into CREAM were stolen in a smart contract hack.
That’s the nature of the beast in the wild west of crypto, with over $1 billion worth of assets stolen, all cataloged on Rekt.News
In fact, according to Rekt News, and per my post the other day re: Uniswap v3, something like 50% of LPs on the dapp have lost money.
The reality is that, at the moment, DeFi isn’t ready for prime time.
It’s too difficult for developers to write secure code, mostly because Solidity-the language of Ethereum- is too difficult to master, or even to achieve proficiency.
For now, the bold and brave have Nexus Mutual to protect them, but longer term, there’s going to be a better alternative.
This is why I am excited about what the Radix team (disclosure: advisor) is doing.
They recently released a developer preview of Scrypto, which is the world’s first asset-oriented smart contract language. In other words, it is built specifically for DeFi.
They just had a launch event in NYC a few weeks ago and I highly recommend you watch (at 2x) the keynotes from CEO, Piers, and the CPO, Matthew.
It’s refreshing to see a team that has really thought about the challenges of DeFi at the highest order of magnitude and what is necessary for “software to eat the world” when it comes to finance….a $400 trillion opportunity.
Until there’s a better way to build DeFi apps, people will continue to get Rekt.
DeFi is going to win, but it won’t win until “getting Rekt” is part of early crypto lore.