Crypto users are choosing juicy yields over protection, putting billions at risk of hacks
CoinDesk·
60-second summary
DeFi insurance protocols are collapsing under the risks they were built to cover as users prioritize yields over protection, putting billions at risk of hacks. Launched with ambitious plans during the 2020 crypto boom, these protocols failed to adapt to evolving hacking threats, leaving investors vulnerable to significant losses and industry-wide instability.
DeFi insurance protocols debuted with huge ambitions during the 2020 crypto boom. But as hacks evolved and users chased yields over protection, most of the sector collapsed under the same risks it was built to cover.