AskLeo - How Safe is DEFI and How You Pick "The Right One"?

I'm probably not the most entitled person to talk DEFI as currently not involved in any type of farming, yielding or whatever you guys do on DEFI projects out there, whether on the Ethereum blockchain or BSC, but I am not blind towards such crypto projects either.

I do hold some UNI and been doing that only for speculative purposes, but was wondering today how safe is DEFI after all...? Why would I throw this question to the LEO community at this moment? It's because quite a few around here are involved in CUB DEFI and are way better positioned to illuminate us in that regard.

Binance Smart Chain project TurtleDex pulls the rug on its users and steals $2.5 million. That's not nice and honestly I wouldn't like to be in the position of anyone getting their funds stolen by the turtle. It happened though, and this type of situation reminds me of the ICO saga from 2017 and additional similar exist scams that made crypto famous back then.

What exactly happened with TurtleDex?

"TurtleDex, a decentralized finance (DeFi) file storage project on the Binance Smart Chain (BSC), is believed to have pulled a rugpull exit scam yesterday when more than $2.4 million in funds were drained from trading pools on major BSC DeFi exchanges Ape Swap and Pancake Swap. Yesterday, TurtleDex drained the liquidity pools on Ape Swap and Pancake Swap, converted their pot to ETH and then sent the funds to Binance wallets, according to Etherscan. TurtleDex’s entire online presence has vanished; its website is offline and the Telegram group’s admin’s accounts have been deleted, along with its Twitter account." source

All gone in literally days after the launch and it's $2.4 million that we're talking about with this heist. DEFI Stalker has warned his followers through a tweet about what's to happen, prior to the spook, but probably not many paid any attention. So far it seems that CZ is not approaching the topic either and FUNDS don't look that SAFU, don't they...

I'm far from being an expert in DEFI although I plan to at some point try it, maybe when the waters will become calmer and the risks won't be that big as they currently are anymore. We've had our hacking event with WLEO as well, and Leofinance has handled it exemplarily thus we can't call LEO an outsider of such situations.

I've wrote this post as an #askleo one instead of a news type of article bringing awareness towards the TurtleDex event because I want to read some opinions from experts or DEFI users with experience from around here in regards of how safe is DEFI currently, what could one project's weaknesses be, how safe is CUB DEFI from a future hack like the one with WLEO, and how a noob like me knows how to pick the safest bet.

I'd also like to know for the future if there is any possibility for me to be part of any DEFI project by simply providing stable coins liquidity. Thanks in advance to all of you taking the time to share your knowledge in this regard and wish you massive profits in whatever your approach to crypto is. Have a great Saturday evening and see you to the next one.

Thanks for attention, Adrian

Posted Using LeoFinance ^Beta