28/10/2021 DeFi security incidents happen frequently, insurance should be taken seriously right now!
The Cream Finance team confirmed the theft of $130 million worth of tokens in a new tweet, saying that “Our Ethereum C.R.E.A.M. v1 lending markets were exploited and liquidity was removed on October 27, 13:54 UTC.”
And The protocol has notably suffered multiple flash loan attacks in its history, losing $37.5 million in February and then another $18.8 million in August.
yesterday’s hack is the third largest DeFi hack in history, according to Rekt’s leaderboard (although both of the two bigger hacks had funds returned).
This will bring the total amount of funds stolen in DeFi attacks above $500 million (graph not yet updated).
The development of DeFi is similar to Lego bricks, and its composability and scalability have brought new development space to the blockchain industry; however, if there is a problem with one “building block” in DeFi, it is very easy to cause systemic collapse. So as to bring irreparable losses to users. The DeFi industry is still very young, and the test of time is still very short. After hacking incidents happened frequently, it may be time to revisted the crises and opportunities brought by DeFi. In a perfect financial system, insurance is an inexhaustible and indispensable part. Insurance is a way to protect user funds and help users transfer certain systemic risks.
INS3 is the first fully decentralized original insurance (non-DAO voting insurance). The project realizes automatic payment judgment through a fair game between oracles and users in the payment mechanism, thus abandoning the process of voting on governance tokens to determine whether to pay, and minimizing the governance of the system.
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