To clarify the issue, the author provided an analogy: “imagine if a roller coaster company permitted amusement parks to determine their own minimum safety standards.” This exemplifies the idea that letting things be flexible without proper guidelines can introduce unforeseen dangers.
The article went further to argue that the underlying setup posed significant design flaws. “In my view, this design is fundamentally flawed. While modular security is a valuable approach, there should be a robust baseline of security, followed by the possibility of implementing *extra* layers of security for more sensitive applications.”
‘The End of DeFi’
The magnitude and intricacy of the recent exploit have led to widespread and intense criticism. The severity of the breach has raised alarm levels.
Approximately 116,500 rsETH, representing around 18% of the total supply, was compromised. The attacker deceived LayerZero’s cross-chain communication protocol into accepting a fraudulent command from another network, resulting in Kelp’s bridge releasing 116,500 rsETH into an address controlled by the attacker.
In response, various protocols took immediate action by freezing markets and halting certain features. Aave suspended activity involving rsETH, while Lido paused all new deposits linked to the token. Other projects made similar moves to reduce their vulnerability as the situation developed.
Aside from the technical discussions, the overall sentiment within the crypto community turned overwhelmingly pessimistic. One social media post starkly reflected this shift: “DeFi is done… the phrase ‘just use Aave’ is obsolete,” further commenting that “The era of crypto has ended,” and questioning, “If you’re reading this—why are you still involved in crypto?”