May 22
DeFi Hacks Shake Institutional Confidence as Risks Outpace Yields
➤ Institutional interest in DeFi is waning due to frequent bridge exploits and opaque risk exposure, leading to significant financial losses. ➤ The complexity of DeFi makes 'do your own research' impractical, and shrinking yields no longer justify the security risks compared to traditional finance. ➤ For DeFi to gain institutional trust, an on-chain insurance system and robust compliance frameworks are needed, otherwise, it risks becoming a mere database, losing its core value proposition.