{"id":26586,"date":"2020-07-29T11:23:33","date_gmt":"2020-07-29T08:23:33","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=26586"},"modified":"2025-08-26T15:15:26","modified_gmt":"2025-08-26T12:15:26","slug":"vitalik-buterin-many-underestimate-the-risks-of-smart-contracts-in-the-defi-ecosystem","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/vitalik-buterin-many-underestimate-the-risks-of-smart-contracts-in-the-defi-ecosystem\/","title":{"rendered":"Vitalik Buterin: Many Underestimate the Risks of Smart Contracts in the DeFi Ecosystem"},"content":{"rendered":"<p>Ethereum co-founder Vitalik Buterin says that many participants in the DeFi market underestimate the risks associated with smart contracts. He said this on the Unchained podcast.<!--more--><\/p>\n<p>When host Laura Shin asked about the main risks for users of the DeFi sector, Buterin replied:<\/p>\n<blockquote>\n<p>\u201cIn my view, the main risk is that many underestimate the risks of smart contracts.\u201d<\/p>\n<\/blockquote>\n<p><iframe loading=\\\"lazy\\\" src=\\\"https:\/\/www.youtube.com\/embed\/gJq9FcYZe0k\\\" width=\\\"560\\\" height=\\\"315\\\" frameborder=\\\"0\\\" allowfullscreen=\\\"allowfullscreen\\\"><\/iframe><\/p>\n<p>He noted that interest rates in DeFi services are significantly higher than in traditional banks, making their products more risky. Buterin expressed doubt that even platforms that have undergone audits can guarantee stable payouts.<\/p>\n<blockquote>\n<p>\u201cDeFi is still in good shape, but you shouldn\u2019t act as if this is a place where ordinary people should put all their savings,\u201d he said.<\/p>\n<\/blockquote>\n<p>Buterin believes that high interest rates are a temporary phenomenon tied to the DeFi hype.<\/p>\n<blockquote>\n<p>\u201cAs soon as the temptation fades, you may well see rates fall to near-zero levels,\u201d he added.<\/p>\n<\/blockquote>\n<p>The market for decentralized finance has shown exponential growth in recent months. The total value locked in DeFi services reached $3.69 billion. Of this, $1.04 billion (28.22%) goes to Maker protocol, which surpassed $1 billion on Monday, July 27.<\/p>\n<p>One of the side effects of rapid DeFi growth is a sharp increase in Ethereum network fees. To address the problem, Buterin proposed a radical overhaul of how miners are compensated, but his proposal was not adopted by all members of the community.<\/p>\n<p>Follow ForkLog news on <a href=\\\"https:\/\/vk.com\/forklogcom\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener noreferrer\\\">VK<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vitalik Buterin, Ethereum\u2019s co-founder, says many participants in the DeFi market underestimate the risks associated with smart contracts. He said this on the Unchained podcast.<\/p>\n","protected":false},"author":1,"featured_media":26587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,1138,54,200],"class_list":["post-26586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-opinions","tag-smart-contracts","tag-vitalik-buterin"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/26586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=26586"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/26586\/revisions"}],"predecessor-version":[{"id":26588,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/26586\/revisions\/26588"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/26587"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=26586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=26586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=26586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}