Recently, and for the first time in its relatively short history, DeFi faced a minor slump, which isn’t really a surprise given that it is a financial market that is still finding its feet. More to the point, DeFi is now showing strong signs of recovery. This is a vital step for the innovative financial platform. It needed to be tested to demonstrate its resilience. If DeFi continues to recover strongly, people will justifiably believe it has the credentials to challenge its traditional counterpart in the long run.
Hacks and scams are well documented in the industry, as they are often undeniable big news stories. One of the latest and most significant DeFi related frauds saw $320 million worth of Eth taken from Wormhole, a platform that bridges between different blockchain networks and allows the transfer of tokens. However, despite frequent reports of fraud, scams, and vulnerabilities, DeFi continues to go from strength to strength. Even during the crypto bear run, DeFi held its own and quickly started showing signs of growth. Many believe that Decentralized Finance is too attractive and too innovative to just fade away. There is a real alternative to traditional financial models that rely on banks and brokers for the first time.
The decentralized alternative promises to bring more affordable and quicker access to the masses, on the proviso that we can eradicate some of the weaknesses and protect honest users. There is currently far too much at stake for big institutions without some level of due diligence and recourse for when things go wrong. Likewise, the gamble might not yet be worth the payout for smaller scale, individual investments.
With Astra’s protection, DeFi becomes attractive to everyone. Our decentralized protocol protects all users and platforms without affecting the positives that make DeFi irresistible.