Trading Notes | Smart Contract Risks
① Many protocols’ contracts can be upgraded using proxy contracts, and the administrator keys that control upgrade permissions are themselves a risk.
② In 2016, The DAO was attacked due to a reentrancy vulnerability. Ethereum responded with a hard fork, while the original chain that did not fork continued as Ethereum Classic (ETC).
③ Only put funds into DeFi that you can afford to lose. If you have more funds, you can spread them across different protocols.
$ETH 2415.17 (-0.54%)
No guarantee this is correct—make your own judgment.
① Many protocols’ contracts can be upgraded using proxy contracts, and the administrator keys that control upgrade permissions are themselves a risk.
② In 2016, The DAO was attacked due to a reentrancy vulnerability. Ethereum responded with a hard fork, while the original chain that did not fork continued as Ethereum Classic (ETC).
③ Only put funds into DeFi that you can afford to lose. If you have more funds, you can spread them across different protocols.
$ETH 2415.17 (-0.54%)
No guarantee this is correct—make your own judgment.