What is DeFi?

Jack Sanford reported that over 96% of DeFi losses in April 2026 were unrelated to code security.

“Over 96% of those losses were unrelated to code security.”

Less than 10% of DeFi issues in the past year were caused by code-based bugs, per Mark Zeller, meaning most DeFi risk is non-technical.

“Less than 10% of the past year DeFi issues are due to codebased bugs.”

Mark Zeller reported that fewer than 10% of DeFi issues over the past year stemmed from code-based bugs.

“Less than 10% of the past year DeFi issues are due to codebased bugs.”

OpenZeppelin founder advises exiting all DeFi positions due to superhuman coding agents.

“I've been privately advising friends and family to exit all DeFi positions, including low-risk blue chips like a maker dowo and compound due to coding agents that are superhuman at.”

Google's Gemini was used by DPRK IT workers to generate fake IDs during a fake DeFi company sting operation, raising questions about AI misuse for identity fraud.

“Some of the fake ID stuff was stamped through Google's Gemini.”

Laura Shin argues DeFi platforms have an ethical duty to stop users from making wildly harmful trades.

“I think ethically and I do mean ethically like you have a responsibility. I mean, you have a responsibility to prevent the user from doing something that's just like wildly insane.”

Real on-chain B2B borrowing rates run 8 to 12%, far above the 2 to 5% retail DeFi rates typically cited, making on-chain credit uncompetitive with TradFi for business lending.

“The true so when you package all that up the true borrow rate for like what I would call like business like B2B borrowing business lending is closer to 8 to 12%. On chain today not the 2 to 5% that you see in a stuff.”

The OpenZeppelin founder is privately warning that superhuman AI coding agents pose existential risk to blue-chip DeFi protocols, including Maker, Aave, and Compound.

“I've been privately advising friends and family to exit all DeFi positions, including low-risk blue chips like a maker dowo and compound due to coding agents that are superhuman at.”

Without staking yield, ETH functions as a carry-trade funding leg (like the Japanese yen), meaning it gets borrowed and sold rather than held productively, creating structural sell pressure on the asset.

“If there's no yield on it on DeFi, what it means is that it as an asset becomes a funding leg.”

Coinbase and major CEXs declined an opportunity to back legislation that would benefit centralized exchanges at DeFi's expense, choosing instead to support DeFi alongside the rest of the industry.

“There was a time where there's opportunity maybe to try to put their weight behind a bill that would benefit them but not benefit DeFi and them as well as many other folks in including pretty much everyone said like no we actually believe DeFi is important here.”