Vitalik talks about the dangers of smart contracts
Buterin ensures that DeFi trading is not sustainable and in addition to being prone to breakdown and bankruptcy
Ethereum co-founder Vitalik Buterin has warned users about the complexities of the DeFi market as well as smart contracts, ensuring there are different ways to avoid attacks and conduct this trade responsibly.
In the middle of an interview with the businessman about the changes that would accompany ETH 2.0, on the YouTube channel Unchained Podcast, Buterin commented that DeFi commerce is not sustainable and is also prone to ruptures. At the same time, he advised clients not to invest large amounts of money, due to instability in between.
Regarding smart contracts, Buterin explained that the interest rates of these contracts are exponentially higher than traditional bank rates, which implies that DeFi products are vulnerable to bankruptcy.
According to the statistics carried out by the company, for this year different flaws in smart contracts have been detected that have allowed the abuse of their rules. An example of this is the recent case of the Bancor exchange house.
The Russian programmer sees decentralized finance as an unsustainable long-term model that will have a short life. That is to say, the platforms in which the finances are carried out are in charge of generating the payments and they will not be “printing coins” for life. “Once the temptations (rewards) disappear, it could easily be seen that the rates yields would fall back to close to zero percent.”
K.Villarroel
Source: bitcoin
