On April 18, 2026, crypto hackers stole an estimated $290 million from major decentralized finance (DeFi) lending platforms, exposing some lenders to potential losses. In addition, the largest DeFi lending platform, Aave, experienced mass withdrawals to the point where some crypto lenders, including stablecoin lenders, were unable to withdraw their funds.

The hack not only exposed lenders to significant potential losses – it also highlights three inherent risks of DeFi lending. First, DeFi lending platforms are exposed to the risk that they receive inaccurate information – whether intentionally or not – from third-party sources. They rely on information from third parties that tell the platform whether a potential user…