One of the many promises made by advocates of decentralized finance regarding Defi is that it creates an uncensored financial system that no organization can or cannot shut down.
However, the events that followed the record breaking of the Poly network may raise serious doubts about the reliability of these words.
Poly Network is an interaction protocol that connects several blockchains covered by Defi, a universal term used to describe a range of financial products that facilitate the borrowing, borrowing and trading of crypto assets without the need for third-party intermediaries.
In a tweet dated August 10, the team behind the multi-chain crypto project reported that the network had “attacked Binance Chain, Ethereum and Polygon.”
Important Notice:
We regret to report that # polynetwork was hacked into @ BinanceChain @ Ethereum and that @ 0xpolygon’s assets were transferred to hackers at the following addresses:
ETH: 0xC8a65Fadf0e0dDAf421F28FEAb69Bf6e2e589963
Bachelor’s degree: 0x0D6e286A7cfD25E0c01fEe9756765D8033b32c71
– Poly network (@PolyNetwork2) August 10, 2021
When the dust settled, it was clear that the attacker had earned about $ 600 million in various cryptocurrencies. This allows the Poly network to crack the biggest exploit in crypto history and even surpass the infamous mt hack. Gox since 2014.
While the largest Poly network is far from the first significant breach at Defi, it has been a particularly bad year for the Defi industry.
A report by CipherTrace-just before the abuse of the Poly network-showed that in 2021 alone, the number of Defi-related hacks was 270%. Since the report’s release, the industry has already lost $ 474 million, and that number has doubled in a matter of hours.
Despite widespread looting, some in the industry point to the fact that the crypto industry—not to mention the growing Defi sector—is still at the start of its development.
“How early defie was and
