Compound Finance (COMP) is just one of the latest victims of DeFi hacking incidents in 2021. A Sept. 30 incident involving the erroneous distribution of tokens in Proposition 062 revealed a flaw that resulted in $70-85 million worth of excess COMP tokens being misallocated to users.
However, a few days later, an additional $65 million in vulnerable storage was placed in the vulnerable vault, putting at least $150 million in COMP tokens at risk. But while Compound was able to fix the whole situation, it shows just how vulnerable the decentralized finance (DeFi) sector can sometimes be at its nascent stage.
Last year, the total locked-in value (TVL) in DeFi was only 5% of its current value, $255 billion. That change represents an explosive 1,686% increase. Even after Compound failed and most recently, when decentralized trading platform BXH lost $139 million in an attack due to a leaked admin key, TVL actually increased over the past month, climbing 14.27%.
One of the reasons investors have flocked to DeFi protocols is to look for higher returns. The 2020 interest rate floor had no clear basis for an increase, and that led investors to look for other ways to put their money. Tying crypto-assets to DeFi protocols and providing liquidity for such services became an attractive option because it offered more tangible returns. This was followed by lucrative pharming in 2020, which prevailed until this year.
Solutions that are protected
Wellfield Technologies is one of the few companies that really tries to secure its products. In the near future, the company will release its revolutionary product, MoneyClip. This DeFi wallet has been in development since 2019. The app allows users to attach their bank account to a blockchain and enjoy all the features DeFi offers. In the third quarter of 2021, a beta version of the app became available to users.
On the road to the launch, companies’ common shares have become available for trading on the TSX Venture Exchange on November 30, under the tickers WFLD. At the moment, WFLD is one of the most popular assets on the exchange, and it deserves it. Check it out for yourself.
Wellfield is creating unique technologies to accelerate the evolution of DeFi through its “MoneyClip” brand, which develops apps aimed at making DeFi work in our everyday financial lives. This is probably the missing link that will allow DeFi to take over the world. Of course, other companies have tried to develop similar solutions before, but they didn’t get enough publicity or were simply so inconvenient for users that they didn’t gain enough popularity. This is not going to happen with Wellfield’s app.