DeFi hacking and fraud attempts have so far cost participants $ 1.29 billion in 2021
Paris, France-(Newsfile Corp.-April 15, 2022)-Bybit, the world’s third-visited cryptocurrency exchange, addresses a prevalent DeFi security vulnerability and is a Paris blockchain. We considered an industrial scale solution at the Week Summit.
Endanger everything-the actual cost of high yields on DeFi
From admin key breaches to rug pulls, a long list of high-profile DeFi projects has been the victim of hacking and fraudulent attempts, and so far, participants have already cost $ 1.29 billion.
Lawrence Tan, Director of Spot Business Development at Bybit, said in a keynote that DeFi projects are particularly vulnerable to security risks.DeFi Security: Risks Behind Yields and Mitigations.. Almost 74% of blockchain security incidents in 2021 were related to DApp and DeFi.
Even the most security-sensitive crypto veterans are not affected by DeFi risk. Tan himself barely evaded the PolyNework hack and ended the protocol’s liquidity mining just two days before the hack’s victims reached $ 611 million.
DeFi Risk Reduction-Become an Independent Investor
Tan says the simple rule of scrutinizing a DeFi project is carefully rewarded.
“Consider open source and audited projects by a team with a real name built. Look for projects that are popular, have a large TVL, and have a proven track record. You don’t have to rush in. High yields. “
He added that conducting his own research, diversifying and setting appropriate token allowance approvals is also included in the DeFi Security Checklist.
Centralized exchange responsibilities to protect
Tan’s technical analysis of the largest DeFi hack in history has shown that centralized crypto service providers are a popular target. Strengthening the KYC and AML efforts will help protect investors, he said.
“Centralized exchanges are one of the most important gateways for users to enter the world of cryptocurrencies. They have a responsibility to help mitigate the DeFi risk of users and communities. Very in service and education. It can play an important role, “says Tan. ..
He elaborated that service providers dealing with risk-on assets need to invest more in anti-phishing efforts and education.
Bybit has been actively helping the public understand DeFi and the risks associated with it through Bybit Learn, a publicly available online learning platform. Beginners can also get involved in liquidity mining, try Bybit wallets and gain experience with DeFi before leveling up their investment portfolio and risk thresholds in decentralized spaces.
He also said that centralized exchanges are better deployed to provide entry-level users with cross-chain bridges and to provide a safer and more customized experience.
“Chaos is very common in the early stages. It happens in most innovations in human history. The industry learns from failures and disasters. As an ecosystem, the industry improves itself. And this is our step forward. So chaos is not a pitfall. Chaos is a ladder. “
Early adopters of crypto technology, DeFi advocate Tan brings 10 years of blockchain experience to the master stage at the blockchain, crypto and NFT European flagship events.
Bybit is a sponsor of the 2022 Paris NFT Day and Blockchain Week Summit whales and rhodium. The conference will end on April 14, after three days of industry insights on blockchain, cryptocurrencies and NFTs.
Bybit is a cryptocurrency exchange founded in March 2018, providing a professional platform for crypto traders to find ultra-fast matching engines, excellent customer service and multilingual community support. The company strives to be the most trusted exchange for emerging digital asset classes by providing innovative online spot and derivative trading services, mining and staking products, and API support to retail and institutional investors around the world. increase.
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