Figuring Out Who’s to Blame for DeFi’s Persistent Security Issues

Previously, a vulnerability in the smart contract code led to another DeFi project hack where $25 million was stolen from the Lendf.me decentralized lending protocol and decentralized crypto exchange Uniswap. On one hand, as Brian Kerr, CEO of DeFi lending platform Kava Labs, previously told Cointelegraph, the Ethereum blockchain’s architecture is not capable of responding to the security demands of the DeFi sector because testing possible bugs is almost impossible in the Solidity programming language.

Nevertheless, as the DeFi sector evolves, its developers should become exceedingly aware of the growing security risks and work to reduce them, according to Hill: According to the latest report published by research company Dgen in collaboration with an open-source DeFi protocol Aave, ever since DeFi projects have become hacking targets, the developers began working on sandboxes and clear frameworks for dispute resolution. The accelerating growth of DeFi platforms and products with their unique composability creates interdependencies and requires a solid source of asset pricing data, as explained by Paul Claudius, co-founder of DIA — a Swiss open-source DeFi oracle platform — who told Cointelegraph: So, is there anything DeFi teams can do to mitigate security risks, given that there are many products that successfully maintain a high level of security for their own and user funds?

Timeline of Ethereum