Two things are distinctive for the DeFi segment right now: it\u2019s soaring to unprecedented heights; it\u2019s poorly regulated, and barely anyone with resources or some tech skills can run a smart contract and attract the audience. These two make the field overly alluring to attackers: almost $300 has been stolen in DeFi since 2019, of which around $150 in 2021 alone.How exactly do these attacks happen and how to protect yourself? We will look at the mechanics and bring examples of the biggest attacks in DeFi so you could see what protocols to be particularly cautious with.DeFi gives access to blockchain-based financial services such as borrowing, lending, and interest-earning. The key thing is that DeFi is inclusive and permissionless \u2014 anyone irrespective of their citizenship, social status, and credit history can take advantage. DeFi is trustless as it runs on smart contracts \u2014 all the terms & conditions have been described beforehand, written in code, and now execute without human intervention. The only thing you are left to trust here is the protocol team\u2019s ability to write good code. This, in turn, is commonly checked by audits and by the community as most of the projects are open-source.If this makes no sense to you, consider reading these first: 8 perks of decentralized finance and 7 biggest DeFi projects in 2021.How does this leave room for manipulation, though?A hack in DeFi is when someone uses the vulnerabilities of a protocol to gain access to the funds locked in it. Here are the three main \u201cstrategies\u201d of how this is done:DeFi projects are made very fast, and the team doesn\u2019t always have time to thoroughly review their code. Hackers exploit these vulnerabilities.Every protocol in DeFi has its own mechanic of how users lock their funds and how they get rewarded in return.\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Two things are distinctive for the DeFi segment right now: it\u2019s soaring to unprecedented heights; it\u2019s poorly regulated, and barely anyone with resources or some tech [...]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/5106"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/comments?post=5106"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/5106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/media?parent=5106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/categories?post=5106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/tags?post=5106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}