[14/33] 🧨 Exogenous Protocol Risk DeFi transactions can be susceptible to threats from external factors. New Free DAO suffered a flash loan attack leading to a $1.25 mil exploit and 99% loss on $NFD value

[12/33] 🧨 Market Risk When investors’ confidence in $UST and $LUNA plunged, the wide #Terra ecosystem suffered a massive bank run. Protocols on Terra such as Anchor, #Astroport and #Terraswap's TVL plunged 80-90% within a month

[11/33] 🧨 Intrinsic Protocol Risk Protocol have risks especially if there is a design flaw. When $UST lost its peg, investors defended it by burning $UST en masse. And by design, this led to massive minting of $LUNA which hyperinflated LUNA’s supply, wiping 99.9% of its value

[10/33] 🧨 Loss of Peg Assets like stablecoins are meant to be pegged to a currency standard such as $USD. However not all stablecoins are "stable". $UST, an algorithmic stablecoin, backed by $LUNA, a volatile asset, crashed spectacularly to near zero

[9/33] 🧨Impermanent Loss (IL) IL occurs when the dollar value of the withdrawal is lower than the dollar value of the deposit. It happens when prices of the tokens change when providing liquidity to a pool. The greater the price volatility of assets, the greater risk of IL

[4/33] 🧨Rull Pull The founders behind a protocol can pull the plug on the project, leaving users high and dry as per what happened to NFT platform @SudoRare, a fork of @Sudoswap and @Looksrare. $820K worth of funds were lost. The anon team pulled a complete disappearing act

Great meeting Aby and @bluereader_org from the @SlowMist_Team. They have an awesome blockchain security and audit team!

6/ Putting together a robust multi-layered security strategy dramatically increases the cost of attacks for the hackers and reduces the probability of attacks against you

3/ Secure Multi-Party Computation (MPC) with distributed key sharding technology can help prevent a single source of failure on the private key. Keyshard refresh shortens the window of opportunity for attacks to take place.

1/ Had a blast speaking at the recent #AlibabaCloudSummit2022 on how Multi-Party Computation (MPC) and Trusted Execution Environment (TEE) technology can help #Web3 institutions to better secure their #Crypto assets