#driftprotocolexploited
One of the primary concerns with DeFi is security, as shown by the very recent #DriftProtocolExploited event, which highlights how quickly things can go wrong.
Incidents such as this create a loss of confidence in the market, but they also provide opportunities to learn. A large part of risk management is being aware that all smart contracts (regardless of their sophistication) are only as good as their audits and how they were tested in the real world. This emphasizes to users the necessity of managing their risk, placing no more than 50% of their assets at any single trading venue and frequently monitoring their accounts.
While fear comes into play with these types of incidents, innovation will eventually follow. Each new protocol that arises from an exploit will be more sound than its predecessor, with improvements in security procedures and with more mature ecosystems.
If you’re participating in DeFi now, you are at the beginning, however, you should continue to exercise caution.