How (Not) To Get REKT - DeFi Hacks Explained

Every opportunity comes with risks, and DeFi is no exception. For every way you can make money in DeFi, it seems there are at least two ways you can lose it. Although these risks can’t be avoided entirely, with careful risk management and sensible judgement, you can at least decrease your chances of getting totally REKT.
So what are some of the most common ways people lose money in DeFi? What are the different types of hacks and exploits? And most importantly, how can you minimise your chances of being negatively affected by hacks in the future? You’ll find answers to these questions in this video.
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[@Finematics]

🖤 Check out Rekt News ► www.rekt.news/ ❓ What do you think about hacks in DeFi? Comment down below 👍 Hit the like button if you enjoyed this video 💛 Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics 🐦 Follow Finematics on Twitter ► twitter.com/finematics 📘 Check out our FREE Guide to DeFi ► finematics.com/guide-to-decentralized-finance/

[@lilisarg6678]

Nice video friend, already saw the new one kek. Waiting for a video on SCAM Token in future?

[@user-se4ic9it3w]

pls review my favorite Lunar Highway. I truly like their system and their contemporary tech marketplace. must I continue feeding my wallet with their LUNAR? Help me please.

[@SAGA45]

How can you tell if a liquidity pool is locked?

[@christopherdobrinski9669]

Broo. Crypto Professor at Harvard no cap

[@shama1689]

This is exactly what we all need!! Thank you very much as always for your great content!!!

[@sunscorpio81]

Very informative! Need more videos like this! On hacks and exploits, specifically on BSC, how to spot honey pots, what are some red flags we can look at on the contract? Such as minting and I'm sure there's more. Very nice job tho!

[@Go2Matthew]

Another great video! I lost money on two platforms hacked in the same week. I mitigated that risk in the only way I could think of... Spreading my funds across multiple apps and monitoring regularly. Also just reminding myself that this is new, and if I can't take the risk, I shouldn't be here.

[@m.stellar309]

Your vids are brilliant. I always look forward to them. Many thanks

[@Finematics]

Thanks!!

[@knuttella]

glad to find this channel. great content, keep it up!

[@Finematics]

thank you!

[@cryptonanda]

Simply brilliant. I love your videos for the simplicity in chosen words and how you guys bring up the subjects your choose. Thanks

[@Finematics]

thanks!!

[@cryptonanda]

@@Finematics and now you have a follower in rekt news. Love it!

[@stewheart]

as an aspiring web3 dev - this is a great source for learning. Thank you! Instant sub

[@renaissancemaneric8019]

Love and share your content, sir! Would LOVE an explanation on MEV and the current solutions.

[@Finematics]

thanks! A video on MEV is coming soon

[@petyap7600]

As always the best!

[@Finematics]

thanks!

[@charlieh6807]

You need to get more views man! These videos are so good

[@Finematics]

thanks! :)

[@mitch3990]

Dude is a legend

[@davida1703]

Agree, those are so clear and well constructed. Keep it up 👌👍

[@ruangwithviwathanatepa7860]

Yeah I recommend all my friends your channel

[@lostinherb2000]

Love your videos knowledge is power!!

[@gustavgustaveson1838]

Great video mate - very clear.

[@Finematics]

thanks!

[@matttatts]

Great content as always thank you!

[@Finematics]

Great to hear! :)

[@scottross9016]

I use to get rugged often looking for the next uniswap gem about 1.5 years ago. Now days I only buy projects backed heavily by VCs it won't stop an "exploit" but it will atleast protect you from a rug. Great video btw

[@perix7536]

"...Backed Heavily by VC.." what does IT mean? Ventures Capital ? If yes where do you get this Info?

[@Lawallful]

@@perix7536 check on Crunchbase and look at articles

[@MindYourCrypto_MYC]

Amazing video as always.

[@Finematics]

thanks! 🙌

[@CarlosBruguera]

Very clear and helpful! 👍

[@Finematics]

thanks!

[@gustavogonzalez5537]

Awesome Video, Sharing in a big group of cripto traders now

[@alexk4096]

Great, as always!

[@Finematics]

Thanks again!

[@KSturmm]

Amazing video!

[@soundisfunction]

Excellent videos, subbed

[@Finematics]

thanks!

[@tehPlacebow]

Thanks for making these videos! Quick question, are you using videoscribe? ^^ (Im an after effects nerd that would like to create storytelling videos in the whiteboard style)

[@kv5113]

amazing and original content here! excellent video

[@Finematics]

thanks!

[@will1964]

I’ll become a patreon member of you do a video on CeFI . Preferably Celsius as I’m an investor but even a comparison of Celsius v BlockFi v Nexo. Great videos thanks

[@carloskoppen]

thanks for another great vid!

[@Finematics]

you're welcome! :)

[@jennachang3269]

Awesome! Thank you :)

[@matejharaslin7288]

Great content quality. Thx for the video :*

[@cryptoingresos.]

Brilliant. It s like attending the DeFi n Blockchain University for me.

[@Finematics]

Great to hear! :)

[@maxthevalue8893]

Awesome stuff. DeFi is the next big thing and could replace banks altogether.

[@yusufpintar]

it's 00.00 am at my place, but i cant sleep before watching this gem

[@badnewstalkstech6900]

Same here

[@Finematics]

amazing! :)

[@giod6321]

Probably can can't ether sleep afterwards..

[@entersadman7226]

Same here also

[@nalaeuteamo]

Amazing. Good job

[@Finematics]

thanks!

[@sean6459]

I was in Harvest Finance when the flash loan attack happened, it recovered to its prior price but I think that news scared of any new investors. Shame because the project was pretty cool, and had good incentives for token holders.

[@muhammadshahir1312]

Im subcribing!

[@Finematics]

thanks!

[@muhammadshahir1312]

@@Finematics most welcome!

[@valenciacrypto]

Gracias por sus vídeos y espero puedan poner subtítulos o hacer vídeos en español.

[@CD-yf3ky]

Thanks, that's helpful as always. Question: What do you think about DeFi Summer 2.0? Key DeFi protocol tokens have recently seen a strong rise in value ($COMP, $YFI, $UNI to name a few). TVL also reached record levels. Do you think we will see a new (stronger) bull cycle? Thanks!

[@TheFluffyFix]

Terra anchor was an amazing idea

[@dna88i]

Defi insurance protocols could solve this issue 👌🏻 Bridge Mutual, NXM, Armor, ect

[@w.o.jackson8432]

And then you will need insurance for your insurance...and insurance for your insurance for your insurance....

[@dna88i]

@@w.o.jackson8432 locked liquidity pools in an AMM is enough to support both parties from the risk of total loss even if everyone sells the token

[@cristiandeleanu3026]

Just brilliant

[@federico6497]

3:22 "check out the liquidity is locked... is there a multisig?" Ok, but HOW can we check it? Not that many users are able to look into a smart contract's code.

[@JamesDilley]

I love the way you say "Smash the like button"

[@jasperli4513]

brilliant.F**king brillant.I am your fans now.

[@Plankton_GS44]

The way I see audits when I find a new project, is that if it's audited by an ok auditor, then I can safely assume it doesn't have any giga-backdoors, and it isn't a blatant scam. But obviously auditors aren't a panacea, especially since there's more money to be made through black hat than white hat (maybe increase funding for auditing projects on gitcoin and such?)

[@bradjipark]

I think you should do something on NFT Smart Vaults. These prevent a lot of the rugpulls that you see in crypto today. Visor finance is a good one.

[@emilyw5438]

Thanks for the video. Any reliable stablecoin farms to suggest?

[@elysiumboats]

Theres no such thing as a 'stablecoin farm'. To yield farm, you can visit tons of protocols. Curve, yearn, harvest...theres tons.

[@toyarj37]

With the liquidity locked which one is better time lock or multi sig?

[@pt2584]

rekt brought me here !

[@stephanlavigne9105]

Hello thanks for your content. A suggestion : maybe It Will be interesting to explain how Work the ethereum virtual machine one day. What do you think about ?

[@Finematics]

Yes, good idea for the future videos

[@Lukazri]

How does oracles help prevent flash loan attacks?

[@chilltunes6209]

Hi finematics could you do one one ICP? How does it work? How is it different to ETH?

[@clemiboi]

In the harvest finance attack, firstly USDT increased and eventually decreases. If USDT remains the same price, then how did the profit of 0.5M come about?

[@shaheriarali9982]

Hello! We awaiting for video on elongate tokenomics

[@lherfel]

thanks

[@keyone4582]

You're the king of crypto education👊

[@Finematics]

thank you!

[@highbrand]

Rug-pulled once on Uniswap. Looking for quick profits turned into a super quick loss.

[@xrendezv0usx]

The lead dev for core/delta took FEIs bug bounty even after Uniswap blacklisted delta ... Core/delta devs biggest chads in defi

[@Ro11ingBoy]

Thanks for the new video!! Do you have twitter? I wanna follow you

[@Ro11ingBoy]

@@finematics7994 WTF XDD

[@Finematics]

the previous message was for a scammer, here's my twitter: twitter.com/finematics

[@Ro11ingBoy]

@@Finematics Oh, thanks!!!

[@wryed]

what kinds of risks are there with staking in DeFi?

[@greetness1458]

When are we getting your BTC price predictions?

[@NationalSecessionistForces]

300 eoy

[@Machine_Learner]

Are there DeFi projects looking to emulate ETFs? Looking for a DeFi project where one can create a coin that emulates an ETF.

[@elysiumboats]

Mirror Protocol. Tokensets.com

[@dreamer5234]

What do you think about the Anchor Protocol from the Terra Blockchain? How safe is it? I wouldn't want to get rekt. Thanks for the video!

[@elysiumboats]

A decent protocol on a decent chain, however there is virtually no other activity on Terra chain. Stick with Ethereum.

[@ProfAzimov]

​@@elysiumboats This aged well for the wrong reasons

[@garylim9917]

I have recently join the Defi community. I realize there almost all coins are onto ETH chain. But there is only one DefiChain what is that? Are you able to do a explanation onto DefiChain?

[@elysiumboats]

Defi is not a chain, it is a space. The majority of Defi protocols live on Ethereum, however other chains also have DeFi protocols.

[@johannesott3299]

Q: why does USDT go up when he swaps it from usdc?

[@hossainkhoshkam6029]

this is my question too

[@-eurosplitsofficalclanchan6057]

also silent rugpull. where a project is hyped and liquidity is removed by team slowly over a peroid of time and the project dies.

[@d3inx251]

May You please expain the risk with Binance Liquid swap?

[@elysiumboats]

Stay away from all things Binance aside from their trading platform. If you want to be a liquidity provider, you need to be on Ethereum.

[@user-np2zj6hl9b]

Hello buddy, nice review Have ya heard about WorkQuest? There is like 7% daily rise according to CMC. Need to know ur mind

[@user-lx7du8yy4d]

there have already been a lot of DeFi hacks. But Uniswap also recently introduced regulation. Apparently, there is nothing better than the utopia ecosystem for free trade.

[@haleyharding4732]

I’ve only ever gotten rekt via hack once and that purple bunny & dinosaur bird at yearn gave everyone their money back.

[@errgo2713]

Saving this for the next time I see "Not your keys not your coins".

[@elysiumboats]

This is besides the point. Not your keys not your.... refers to centralized exchanges, not DeFi.

[@errgo2713]

@@elysiumboats To clarify: I regularly encounter DeFi zealots that understate its risks while overstating those of CeFi. This will be a good video to link to them.

[@elysiumboats]

@@errgo2713 I think the goal is what’s sustainable long term and why crypto was born in the first place - to sidestep centralization. DeFi is evolving at an unparalleled pace. CeFi can not offer what DeFi already does.

[@errgo2713]

I understand this old view. The problem is that it's just an ideal. The reality is that crypto will always be a hybrid of centralised and decentralised protocols, organisations, and businesses. CeFi will always be in the mix, and it has a legitimate role to play.

[@elysiumboats]

@@errgo2713 If I convert my dollars to Eth, trade with eth pairs, stake with eth protocols, earn wages in eth, and send payments with eth...I am completely removed from TradFi. All of this is already happening.

[@frankfunk9188]

Bring us Liquity bro

[@inityo]

Multisig are not that safe!

[@yttambayan977]

Please cover Web 3.0. Thumbs up if u agree!

[@duyhungle1562]

i get 404 not found when open the post

[@Finematics]

should be fixed now, sorry about that

[@David-124]

If these are "exploits" rather than "hacks" does that mean they are legal?

[@johnta17]

It’s obvious the auditors are doing the hacks/exploits right after the audit.

[@minicoohei5057]

Cool Materials. Do you have the interpreter for Japanese??

[@Drone256]

These are not "hacks" or "scams". It's simply the way market forces work. The fact that someone did not see this as a possibility before it happened does not make it a "hack".

[@stevengraham7627]

Agreed. The arbitrage examples and conflation between "hacks" and "exploits" is lazy and disingenuous.

[@lherfel]

will be interesting if the guy is caught, if chainanalysis or someone breaks tornado cash pathway here

[@harambeinhumanform]

I thought the meerkat finance rug pull was about the smart contract being bugged and some idiot insider maybe a dev went and supposedly locked the tokens but he did a typo in his code, maybe by accident, who knows, but it didn’t compile and deploy, hence the dev technically never locked away the tokens. Don’t quote me on this

[@piotr5944]

wowow

[@theokaenzig9549]

#Dotify 😕

[@sers8760]

the video starts at 1:40

[@sers8760]

@Finematics .

[@agoetz21]

So dogecoin is a hack exploit.?.

[@thetrends5670]

Yep, I receive a message in my Discord that I won 7000 BTC, but they trick me and stole my cryptocurrencies.

[@TheFluffyFix]

Luna to the MOON

[@_vilepenguin]

Rug pullers play on people’s greed. I have been fooled before and I deserved it. Flash loaners understand smart contacts better than most and are very creative, they should be rewarded according. The word “hack” does not apply in my opinion.

[@elysiumboats]

Bullshit. It is not a greedy activity to be staking stablecoins on protocls to yield farm. When you deposit money in your bank to earn interest, are you being greedy? No. Stealing money from people is not ok regardless of the skill required.

[@_vilepenguin]

@@elysiumboats I merely said I objected to the word hack. Never once did I say it was OK to rob people. Bring your stable coins to a more reputable site with a lower APY. It’s greed that gets people robbed was my point.

[@functional_Psychology]

Where does ZeniQ stand in all this. Is it a coin with prospect of just another rug pull

[@oceans.bitmap]

Thanks again for the education, I would love to see you do a video on defi on Bitcoin Defichain #DFI. Thanks

[@elysiumboats]

Its dogshit. Bitcoin is incapable of programmable smart contracts. You need to be on Ethereum and be exploring defi protocols there.

[@oceans.bitmap]

@@elysiumboats I know all ETH has to offer and I see a great potential from the defichain project, don’t be such a hater.

[@elysiumboats]

@@oceans.bitmap Just not understanding the reasoning behind defichain at all. Wrap your bitcoin, bring it to Ethereum, and have instant access to the entire defi space and community with its developer community built in granite. Like what are we really doing here? Genuinely confused.

[@oceans.bitmap]

@@elysiumboats building defi on top of BTC the most secure network, and the undisputed king of crypto. Pretty easy to understand.

[@elysiumboats]

@@oceans.bitmap This is a ridiculous statement and that’s why there will never be a video on this channel for it. A calculator is easy to use, but a computer is more powerful. Bitcoin is easy to use, but Ethereum is more powerful.

[@Rokvtm]

we Need a video of Bitcoin, and one of descentraloization, proof of work or stake, bitcoin mining, Bitcoin is the first currency we should be very ilustrated about it, the more you learn about bitcoin, the more we understand other. thank you ‘love your videos.

[@quangminhtruong4985]

Defi needs $HAPI token for anti-hacked.

[@barkmark]

So. how not to get Rekt?

[@fmissark]

TALK ABOUT HOW NOT TO GET RUGGED

[@Finematics]

it's literally in the video, doesn't look like you watched it

[@onekycarscanners6002]

There is no hack all these are exploits, and rug-pullers are Ponzi scams that's all. If you don't know what a developer or founder will gain from a defi project, then you are at 80% chance to get rugged pulled by founders or even early investors.

[@user-jl7wm2sc1c]

信息量有点大 看不太懂

[@alph4130]

no french ? :/

[@Finematics]

Usually KZbin generates subtitles automatically, but they are having some issues today - it will be most likely added within a day.

[@yusufpintar]

and pls for next video, add sub in english, im not native english people

[@Finematics]

Usually KZbin generates subtitles automatically, but they are having some issues today - it will be most likely added within a day. Thanks for watching!

[@lightanddarkside416]

I dont understand every single word u said

[@elysiumboats]

Keep learning.

[@shin-ishikiri-no]

Stoody Horder!

[@nathanblake5335]

Is there any chance you can get a different microphone feel like I can here the spit in your moving as you speak…

[@coomassieblue5035]

Really really Bad. Shallow Facts with bad explanations. And the graphics don't help either. This one video should have been a whole series. Each one for every kind of scam/exploit.

[@TheFluffyFix]

Awesome! Thank you :) LUNAMOONA