The founder of ETH has warned the crypto community about the pitfall of smart contract operations in decentralized finance. He advised customers not to risk putting their entire savings into decentralized finance (DeFi).
In a comment about his fears for DeFi products, he warned that many people play down the pitfalls of decentralized finance. He mentioned that interest rates are remarkably higher than regular bank loans, which means that decentralized finance products have higher risks and a high tendency to break. He added that he wasn’t convinced by audited protocols guaranteeing that DeFi would not collapse.
