Curve founder Michael Egorov has appealed to the decentralized finance (DeFi) community to come up with some security measures and standards to help minimize vulnerabilities and avoid exploits in the market.
While addressing the rise of hacks, Michael Egorov suggested that it is crucial for the entire market to unite its efforts to protect consumers and keep their trust.
In the words of the Curve founder, one of the primary problems is linked to the fact that people tend to use centralized components in what is supposed to be a decentralized environment.
According to Egorov, this conflict of interests creates vulnerabilities that can cause problems in providing services to customers. The effects of such disruptions go beyond the scope of a single project and affect the entire ecosystem of decentralized finance.
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For instance, the Curve Founder highlighted the situation when a customer cannot withdraw money from an account due to the technical problems of the company’s infrastructure. Although all parties concerned claim that everything works fine and there is no problem with the system, it is obvious that something is wrong with the process.
Moreover, Egorover argued that the major companies within the ecosystem can act as catalysts in this process, bringing various projects under one roof and coming up with standard security rules.
At the same time, other voices in this ecosystem have noted the risks connected to the sector as well. They mentioned the fact that despite all the effectiveness of decentralized finance, there are some risks involved in using this technology. One such risk relates to how high yields cannot be achieved without some trade-offs.
The latest figures show that there have been considerable losses in the DeFi industry from attacks this year alone. In light of all these developments, the plea from the Curve founder for the need for standards cannot come at a better time.
