At this stage, the outlook for innovation in the DeFi space looks rather bleak, especially in terms of composability, as the consequences of any hacks extend beyond a single protocol;
Currently, the right approach would be to bide one’s time and critically reassess one’s security system
Mikhail Yegorov wrote that the number of preventable hacks in DeFi has reached an unacceptable level. The root of the problem lies in centralized points of failure: the Kelp hack affected LayerZero, which then spread to Aave, ultimately leaving users unable to withdraw their funds, even though each protocol claimed to be operating normally.
Yegorov called on the industry to jointly develop standards for secure construction in DeFi and suggested involving the Ethereum Foundation and the Solana Foundation for coordination. “We must prevent problems before they happen, not after.”
Mikhail Yegorov: The number of preventable hacks in DeFi has reached an unacceptable level