Difference between DeFi and cryptocurrencies
Many DeFi users wonder if decentralized finance is as safe as cryptocurrencies. The answer is: No.
They are not as secure as cryptocurrencies.
First, a DeFi platform depends on a schedule that is linked to a smart contract. Such programming can be more or less complex,depending on the functions of the platform and the skills of the programmer. This is the first flaw: complexity.
A complex smart contract is much more difficult to audit. This situation leads to the fact that, although no problems are seen,
it may fail under certain circumstances. If someone detects the bug, it can be exploited. Something that is happening often.
For example, bZx was recently hacked and they lost over $ 8 million from their liquidity providers. Another attack by a
Soft Yearn user managed to transform $ 200 into $ 250,000 due to a failure in the smart contract.
Who researched HOTDOG or KIMCHI before investing in them? Both projects are "meme tokens". Tokens created as a joke,which managed to raise almost 90 million between them, and then fall to nothing and cause losses of money for all their investors.
These projects reached those levels offering up to 4 million percent profit. Many people get carried away by the fear of not
being the first or FOMO (fear of missing something)
Do I trust the DEFI?I cannot trust them yet because they can present failures in your network and funds can be stolen,
DEFI is an arm of a smart contract and that makes it vulnerable because it is more complex.
