How DeFi has contributed to its own collapse by ignoring security and using poor tokenomics
Join Our Telegram channel to stay up to date on breaking news coverage Early in 2021, decentralized finance (DeFi) drove the explosive expansion of cryptocurrencies, but since then, the value of the crypto market has collapsed. Global markets and developers’ carelessness with regard to cybersecurity and (sometimes self-serving) inflationary token structures have both played a part. Too much DeFi has been built on tokens created out of thin air or tokens that lend money to other tokens at excessive interest rates, with little actual economic activity to support the yields promised . Second, there have been several security flaws , hacks, and exploits of DeFi contracts and bridges, and the majority of well-known DeFi platforms have been the victim of an exploit. Last but not least, DeFi is only supported by native smart contract platforms and tools due to t he absence of a unified standard for defining DeFi contracts. This constrains DeFi’s potential for expansion...
