DEXes and DEFIs are not ready for the world yet.
There has been lots of hack recently, and huge funds are stolen from DEXes and DEFIs with people's wallet addresses been exposed by too many security flaws.
Some of the Problems are as follows:
No Insurance for stolen funds:
When you provide LP, or stake your coin, and the contract of the #DEFI is breached, then you lose your funds and there's no proper means of refund sometimes no compensation at all.
No proper security measures to only initiate contract approval once:
You will have to press or click many times to approve and swap coins and this is tedious and exposing your wallet to theft.
When you did not renounce the approval process, your wallet is exposed to all forms of cryptocurrency transactions and withdrawals. Your approval leaves your wallet address open to unlimited transactions.
Too many transaction fees:
You will have to pay transaction fee to approval a transaction and another fee to initiate the swapping process, that's wastes of resources and tediosity.
Too many blockchains:
There are more than 24 blockchains and thousands of cryptocurrencies and this has increased the numbers of theft and increased insecurity measures because people are focused on making their own blockchain instead of working to improve the existing ones.
People find it difficult and don't know where to begin and end up using the expensive and ones as they are commonly used this losing funds in the market.
Too many processes in executing a transaction:
You have to execute transactions and pay fees many times or sign wallet connections many times as well just to connect your wallet or swap funds.
Issues of interoperability and bridges:
The idea of Blockchain interoperability is overlooked and instead, compatibility is the norm.
Compatibility has lead to bridges. In bridging, you're exposed to forms of cryptocurrency threats which is involved in lose of coins. Wallet created in Ethereum and imported to another blockchain is also affected has they are EVMs and thus exposed.
I am a victim of the insecurities posed by DEXes and DEFIs and you are too because we use cryptocurrencies and blockchain everyday.
CASES:
1. My funds were transfered from token pocket wallet on different occasions and other persons had similar issues, but the team refused to heed the problem from the affected individuals. I suspected it to be an internal work or someone is bypassing the code to steal coins.
2. My VVV token was transferred from my wallet, and I think it was because I didn't renounce the approval made with anonverse smart contract.
3. Someone gain access to other of my Metamask wallet addresses and is initiating transactions whenever he wants and I don't know what to do other than abandoned the wallet.
4. I lost my coins and tokens because there was a breach in security in #Phantom Solana wallet which lead to breach in another, nothing was done.
5. Another is from the hop exchange bridge where someone swapped my #xdai to #husdt.