DeFi Security Risks Persist: Best Practices to Protect Your Funds

DeFi security remains a pressing concern in 2026, with many users still falling victim to phishing attacks, stale approvals, and fake apps. According to recent data, these risks can have significant consequences, including the loss of large sums of funds.

The Kelp DAO exploit is a prime example of how quickly cross-chain losses can escalate. In this case, about $71 million in linked ETH was frozen by Arbitrum, highlighting the importance of being cautious when interacting with unfamiliar protocols and chains.

One key best practice for DeFi users is to keep their long-term funds separate from their daily activity. This means using a separate wallet for storing large balances, rather than mixing them with smaller amounts used for day-to-day transactions. Additionally, users should review token approvals regularly and revoke any unnecessary permissions.