defi - uncovering the dark forest behind

Since March 2020, ethereum has fallen as low as $80, starting a two-year bull market since then.

The new k-line rise in printing has given rise to a myriad of concepts that have driven a new round of narratives. defi is a concept from uniswap. thus, the concept of dex first appeared in people's eyes. Distinguished from the cex centralized model, dex is decentralized in all its operational mechanisms and runs on smart contracts.

I was surprised by the innovative way of dex and I got a lot of new knowledge, including AMM auto market quotient, constant equation of x*y=k, liquidity, TVL, etc. Then came sushiswap, compound, avax and various other defi products. Don't worry, my story is just beginning.

I also participated in the summer called defi summer, and I also bought uni, sushi, and other tokens that represented defi. At that time I didn't seem to realize that there were a lot of problems with dex. I transferred 500 uni to my metamask wallet, and I often swap, sign, authorize, etc. on the dex afterwards. But one day I logged into my metamask wallet and I found out that all my uni tokens had been swap to eth in uniswap to the hacker's wallet address. I swear this is the first time I've experienced this.For me at the time, it was indeed a significant loss. I investigated for some time and I found out that it was a problem during some dex authorization and after the authorization was done, the hacker managed to get access to my wallet. But it was already too late.After that, I became a smart contract developer and I spent a lot of time learning, smart contracts, security vulnerabilities, and some assembly knowledge. This also gave me a lot of valuable knowledge and experience along the way in the crypto world.

All in all, defi has only been in development for two years, but it has already become a trend. Even though the bear market is coming, defi still keeps on innovating and iterating itself. defi has also become an unseen world of the Black Forest behind the scenes. Because of the nature of smart contracts, many opportunities to make money have emerged. For example, sandwich attacks, arbitrage transactions, preemption transactions, 0-block attacks, authorization fraud, re-entry attacks, cross-chain bridge attacks, etc. Whenever these things happen, it also means that there will be many people who will have the possibility of losing their money. This is also the most realistic crypto world, and in the dark forest, always believe in the law of the jungle.

But cryptocurrencies have always accepted various challenges since their development, and the problems that defi is facing will be continuously improved and solved in the future. This is exactly what every cryptocurrency enthusiast wants to see. The security and scaling issues of defi will be noticed by many project owners and developers as time goes by, and to this day we see that dex projects represented by uniswap have already started to act, like preparing to develop application chains, expanding the NFT market and improving liquidity issues. All these actions will significantly reduce the potential risk of losing money for us regular users and join better expectations. Because the majority of cryptocurrencies are still common users and professional cryptocurrency enthusiasts like us. Always look forward to better developments, just like when the bull market comes, everything will slowly get better, let's shout LFG!!!

At the end, follow me, share your and my cryptocurrency stories, and listen to more stories about the crypto world that happened between you and me, and look forward to more of them.