The buzzing world of Decentralized Finance (DeFi) has racked up its fair share of brickbats and bouquets ever since rising to popularity in 2020. It broadly refers to non-custodial, peer-to-peer financial services built on smart contract-enabled protocols, usually for services like lending, flash loans, trading, insurance, and many others.
But with the innovations comes the money, and with the money come scams. Millions of dollars have been lost to DeFi exploits, hacks, “rugpulls,” and flat-out frauds in the past many months, with most of the stash exiting the market to never return.
Binance Smart Chain, the smart contract-enabled version of the Binance Chain, has emerged as a hotbed for such scams. Names like BurgerSwap, Belt Finance, Impossible Finance, and others, have accounted for millions of dollars worth of damages, with some like ‘SafeDollar’ on Polygon have dropped to $0 after getting exploited by hackers.
Not all hope is lost, however….