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pamplemoose | 3 years ago

FTX was a completely centralized entity.

The decentralized aspects of crypto ("defi") has been operating just fine through this entire shit-show.

discuss

Gwypaas|3 years ago

Decentralized exchanges are equal to public bug bounties.

https://beincrypto.com/top-ten-defi-hacks-2022-hackers-darin...

pamplemoose|3 years ago

Stick to protocols that have been around for even a year and you'll do much better than those listed in that article. How much has been lost via hacks from Uniswap, Aave or MakerDAO?

Most of those examples you linked are bridges that aren't considered Defi or half-baked protocols that scream "scam".

idiotsecant|3 years ago

And yet decentralized exchanges exist that have been operating successfully for years. Survival of the fittest is a good thing in this case. I would trust a defi exchange that's had people trying to break it constantly for years much more than I would trust, for example, the security of my money in a local bank. People get their money stolen in confidence scams and other exploits every day and that money is just as gone.

pmarreck|3 years ago

Assuming all detected hacks have well-written postmortems, this would be one actual contribution to society from them

JeremyNT|3 years ago

> The decentralized aspects of crypto ("defi") has been operating just fine through this entire shit-show.

There's a reason that exchanges like FTX are central to "crypto" as a practical matter, regardless of the technical underpinnings of crypto itself. These things are required to facilitate speculation and attract users who otherwise would be capable of interacting with the actual distributed stuff.

Without the much needed fiat currency of this class of users, the pyramids couldn't have been built nearly so high.

nullc|3 years ago

To most people defi = blockchain-ized ponzi schemes. Programs that have you deposit assets in exchange for unsustainable 'yield' drawn from other deposits, collateralize by illiquid magic beans.

There were massive 'defi' failures earlier this year. FTX itself appears to have been primarily invested in varrious defi schemes while being short Bitcoin, resulting in the current insolvency.