How safe is money held in on-chain smart contracts, really?
Definition: Many protocols can upgrade their contracts through proxy contracts, and the administrator key that controls upgrade permissions is itself a risk.
The reasoning behind it: Risks aren't limited to contract code. Oracles, other protocols it depends on, admin privileges, and hijacked web front ends can all cause problems.
Ethereum, where $ETH is located, was one of the first public blockchains to support general-purpose smart contracts.
When you see a project promising high returns, be cautious.
Definition: Many protocols can upgrade their contracts through proxy contracts, and the administrator key that controls upgrade permissions is itself a risk.
The reasoning behind it: Risks aren't limited to contract code. Oracles, other protocols it depends on, admin privileges, and hijacked web front ends can all cause problems.
Ethereum, where $ETH is located, was one of the first public blockchains to support general-purpose smart contracts.
When you see a project promising high returns, be cautious.