DeFi Industry Urged to Adopt New Safety Standards After Recent Hacks

DeFi hacks have been on the rise in recent times, with the KelpDAO exploit being one of the most notable examples. The attack resulted in the loss of $292 million in rsETH, and its impact was felt across multiple protocols, including Aave.

Curve Finance founder Michael Egorov has weighed in on the issue, arguing that many DeFi hacks are 'absolutely preventable' due to centralized single points of failure. He proposes a shift towards collective security improvements, with foundations and projects sharing best practices to reduce risks and build trust.

Egorov suggests that organizations like the Ethereum Foundation and Solana Foundation could help bring ecosystems together to establish common principles for DeFi systems. By reducing single points of failure, splitting trust when centralization cannot be avoided, and sharing best practices for configuring critical infrastructure, the industry can move towards proactive risk reduction.