What is Defi Hack?
Defi hack, or decentralized finance (DeFi) hack, is a type of cyberattack that targets the smart contracts and protocols used in decentralized applications. It involves attackers exploiting vulnerabilities within these systems to access user funds stored on them for various purposes such as theft, disruption of services, manipulation of prices and other malicious activities. Due to the nature of DeFi applications being open-source software with no central authority controlling it, they are particularly vulnerable targets for hackers looking to take advantage of weaknesses within their codebase. As more users begin using DeFi protocols and smart contracts there will be greater incentive for bad actors to find new ways exploit its underlying technology in order gain financial reward at others’ expense.
