Litecoin creator & computer scientist Charlie Lee has criticized the whole decentralized finance (DeFi) industry for being a decentralization theatre. The Litecoin creator also said the DeFi industry is flooded with bugs and exploits.
Lee's reaction came up right after the developers of the DeFi platform bZx had reported about a second attack in which 2,388 ETH tokens (about $645,000) had been lost.
This is why I don't believe in DeFi. It's the worst of both worlds. Most DeFi can be shut down by a centralized party, so it's just decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization.
— Charlie Lee [LTC⚡] (@SatoshiLite) February 16, 2020
So how is this better than what we have now? https://t.co/F1HMSeqb6q
Earlier iHodl reported that the previous attack on the bZx platform was carried out with the help of a flash loan from dYdX for 10,000 ETH tokens, of which 5,500 were sent to Compound to collateralize a loan of 112 wBTC. 1,300 ETHs were sent to the Fulcrum pToken sETHBTC5x, opening a 5x short position against the ETH/BTC ratio.
Meanwhile, the value of assets locked in decentralized finance apps and protocols exceeded $1B for the first time. As of December 31, this figure amounted to $670.77M.
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