DeFi’s November Nightmare Exposes Critical Risk For The Crypto Ecosystem
It could be labeled as crypto’s November Nightmare. DeFi protocol Balancer was exploited to the tune of $128 million. Also, Stream Finance announced a loss of $93 million, leading to the depegging of its xUSD stablecoin. Both occurred on November 3.
Decentralized finance is susceptible to risks, which can cascade into further systemic problems. And those problems could be severe – over $150 billion in value is currently locked into DeFi.
Which begs the question: How much does the loss of over $220 million in one day bring into question the long-term risks that DeFi poses to the crypto ecosystem?
Several experts told BeInCrypto that smart contracts are likely the main culprit behind the…
