🛡️ Aave: Controversies on security DEFI ⚠️ Reliable protocol or delay bomb?

Aave: Controversies on the security of protocols DEFI #Aave #defi #CRYPTOSECURITURE #Blockchain #Crypto2025 #cryptoinvesting #financedcentralized #smartcontracts #SafetyBLOCKCHAIN ​​👋 Hello and welcome to all! Today, we are going to dive into the world of Aave, one of the pillars of decentralized finance. This emblematic protocol has transformed the way users use and lend cryptocurrencies ... but it is also at the heart of several controversies related to security. 💡 Is the promise of a financial system without intermediary in danger? Is Aave really reliable or are the potential flaws underestimated? 📚 In this video, we will discover: ✅ How Aave works and how it revolutionizes finance. ✅ The incidents and flaws that have shaken the protocol. ✅ The safety mechanisms implemented. ✅ The current limits of the DEFI in terms of fund protection. ✅ And finally, can we still trust Aave in the long term? 🔥 Stay well until the end to discover the truths that some prefer to silence security in the DEFI. [Chapter 1-Aave: A new era for finance?] 🔹 1. What is Aave? Aave is an open-source DEFI protocol which allows anyone to lend or borrow cryptos without going through a bank or an intermediary. ✅ lenders deposit funds in liquidity pools and receive interest. ✅ Borrowers provide a guarantee (collateral) and can borrow assets. ✅ Everything is done via smart contracts on Ethereum (and other blockchains). 📌 Aave was one of the pioneers to democratize the decentralized loan. 🔹 2. Aave innovations ✅ Variable or fixed interest rate. ✅ Flash loans: instant loans without collateral, reimbursed in the same transaction. ✅ Governance decentralized by holders of the Token Aave. 📌 But with innovation also comes exposure to risks. [Chapter 2 - The weaknesses and known attacks] ⚠️ 1. Smart Contracts ✅ Smart Contracts of Aave, although Audities, are not infallible. ✅ Critical bugs have been identified several times, corrected in time, but revealing potential flaws. 📌 Even a public and audited code can contain vulnerabilities. ⚡ 2. Market handling attacks ✅ In 2022, Aave was targeted by an attempt to attack a low liquidity token (CRV). ✅ Although the attack was contained, it highlighted the risks linked to flash loans and price manipulation. 📌 DEFI remains a field of experimentation ... sometimes dangerous. 🔍 3. The complexity of internal mechanisms ✅ The Aave liquidation system is based on price oracles. ✅ If these oracles are corrupt or defaulting, this can cause unjust liquidations or losses. 📌 dependence on external data creates a point of vulnerability. [Chapter 3 - Aave's safety measures] 🛡️ 1. Regular audits and Bug Bounties ✅ Aave collaborates with cybersecurity firms to audit its code. ✅ Reward programs (Bug Bounty) encourage ethical hackers to report flaws. 📌 A proactive defense but which does not guarantee zero risk. ⚙️ 2. The safety module (Safety Module) ✅ The holders of the Token Aave can stake it in a safety module. ✅ In the event of major loss, these funds are used to compensate for users. 📌 A unique mechanism that strengthens trust, but also exposes stakers. 🔐 3. Community governance and transparency ✅ Protocol updates are voted by the community. ✅ Proposals are public, as are audits and security reports. 📌 Transparency is a major asset of Aave. [Chapter 4 - The limits of security in DEFI] ⚠️ 1. The attacks evolve faster than the protections ✅ Hackers exploit the complexity and speed of DEFI protocols. ✅ Even the best protections can be exceeded by new strategies. 📌 Quick innovation makes safety difficult to maintain. 🔄 2. Systemic interconnected risks ✅ Aave interacts with many other protocols (ChainLink, Curve, Yearn…). ✅ A flaw in a partner protocol can have a domino effect. 📌 Interoperability is an asset ... but also a threat. 🌐 3. Users often remain the largest flaw ✅ Mallated management of collaterals, lack of risk understanding, handling errors. ✅ Decentralization also involves individual responsibility. 📌 DEFI is not for uninformed beginners. [Chapter 5-Can we still trust Aave?] 💡 1. A protocol still evolving ✅ Aave continues to evolve with new versions (Aave V3, Cross-Chain, integration with other L2). ✅ The community is active and the developers reactive.