The DeFi ecosystem is getting a lot of attention by cryptocurrency enthusiasts. However, some new research has come to light regarding potential security issues.
It is always crucial to keep an eye on security concerns raised by experts.
Beware of Blindly Trusting DeFi Apps
Especially when those concerns pertain to financial products and services, such as DeFi.
Several concerns have been raised by the ZenGo team earlier this week.
The team claims that there is an option to exploit this ecosystem significantly.
Users have to manually approve access between their wallet and the DApp product in question.
However, most DApps requesting approval force users to grant access to all holdings in a specific token.
Should that dApp offering become exposed to hackers or otherwise, the entire balance is at stake.
Not just for the end user either, but for all users granting access to their token holdings.
Money can then be moved out of the DeFi dApp smart contracts without requiring further approval by the end user.
Although it remains to be seen how serious these issues are, it is still worth paying attention to.
There have been ample security questions regarding the viability of smart contracts for DeFi.
After all, there’s no reason to put one’s assets at stake for no apparent reason.