Welcome to the seventh installment of PYMNTS’ eight-part series on decentralized finance (DeFi).
Over the coming days, we’ll be looking at every part of DeFi — the biggest, hottest, most rewarding and risky part of the blockchain revolution. At the end of it, you’ll know what DeFi is, how it works, and the risks and rewards of investing in it.
See Part 1: What is DeFi?
See Part 2: What Are the Top DeFi Platforms?
See Part 3: What Is a Smart Contract?
See Part 4: What is Yield Farming and Liquidity Mining?
See Part 5: What Is Staking?
See Part 6: What Are DeFi’s Top 10 Uses?
See Part 7: Unpacking DeFi and DAO
Cryptocurrency is supposed to be safe. After all, that “crypto” refers to cryptography — the mathematics of keeping information secret.
Thus, the decentralized finance platforms built on blockchain and funded with cryptocurrency should be safe, right?
Read more: PYMNTS DeFi Series: What Is DeFi?
Well, let’s look back at the last 30 days: On Dec. 16, blockchain intelligence firm Chainalysis revealed that its 2022 Crypto Crime Report will show that fraud and hacks saw $7.7 billion stolen in 2020.
See more: 2021 Crypto Scams Top $7.7B, Fueled by DeFi-Friendly ‘Rug Pulls’
That presumably includes the $130 million hack of the BadgerDAO DeFi platform on Dec. 2 and the $196 million theft from the BitMat exchange on Dec. 4.
Related:
$196M BitMart Hack Puts Crypto’s Weakness on Display
