Strato: DeFi Security Needs Open Source
Summary
On STRATO we warn that every financial institution is under attack, including banks and DeFi protocols. The announcement explains that DeFi appears more vulnerable because attacks are visible on-chain and that AI has lowered attack costs. It argues open source security is the key path to stronger systems and community resilience.
Every financial institution on earth is under attack right now. Your bank included.
DeFi feels more vulnerable than it is because everything is transparent and on-chain. They can't hide the attacks (maybe that transparency is actually good).
The solution for DeFi lies in open source security, according to ＠vic4wong:
"So every financial institution in the world, whether or not they're a huge bank or whether or not a DeFi protocol, faces lots of pressure from outside hacks. And AI has brought that cost effectively to zero. That's happening to every institution.
And we worked with a bunch of big banks. I won't name them, but we worked with a bunch of big banks. We were talking honestly about this kind of security problems happening all the time.
But with a big bank, those are mostly hidden. When something bad happens, they're mostly hidden. Whereas in the DeFi world, it's transparent. Everyone sees it happening, even as the protocols are dealing with it themselves.
So I think, and the question is, if you look at open source security, that's the way to get to more secure systems over time."
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