Did an interview with Rex Hygate of the well-regarded DeFiSafety watchdog platform. It’s the equivalency of Moody’s or Standards and Poors for DeFi Platforms, providing a rating based on an exhaustive checklist of transparency measures imperative to intelligently make a determination as to vulnerability of a DeFi project.
When you’re investing a sizable amount of assets in a platform, it’s a necessity to exercise a certain amount of due diligence, but you would be surprised the limited scope to which many DeFi investors focus their magnifying glass.
Top platforms like THORChain, Cream, and others are trusted with collectively billions staked and do well for years, but often the trouble comes when they’re introducing upgrades to the code, which are experimental and particularly vulnerable with untested code, such that when they deploy these changes that black hat hackers are ready, chomping at the bit to swoop in for any visible exploits.
Many DeFiers, hoping to amass an airdrop in the future, will “farm” a DeFi platform, even if the platform has made the conscious decision to obfuscate the verified contract source code, a insidious practice that gives them cart blanche to deploy a nefarious contract which gives them the ability to pull the rug out from under their users and million in crypto in the process.
As Rex rightly says, if you’re looking at a project then no verified code should means it is a no go. Many black hat Solidity coders are skillful enough to manipulate a lay user to grant blanket permission to drain a wallet of all of its resources under the guise of accepting an airdrop or any number of seemingly harmless activities that are routine on trusted Web 3.0 websites.
Caveat Emptor on DeFi projects and remember to do your due diligence on a platform before even browsing to the site and never click on Google Ads, which are almost always phishing sites.
DeFi Safety is a great resource to start you on your path to protect your wallet’s safety and make your DeFi experience more enjoyable with your having more crypto than you had when you began!