BXH was attacked by hackers, raising concerns about Smart Pool risks.

Recently, a decentralized yield protocol on the BSC chain suffered a hacker attack, resulting in a loss of approximately $139 million in crypto assets. This incident reveals the potential risks present in the current DeFi ecosystem, especially the challenges faced by Smart Pool products.

According to analysis by security agencies, the attackers successfully transferred project assets by gaining administrative privileges. This seemingly simple method of attack has raised questions about the internal security management of the project. Currently, some of the stolen funds have been transferred to other chains and addresses.

This incident not only affected the directly victimized projects but also impacted multiple Smart Pool projects that relied on its services. A well-known Smart Pool was forced to suspend its withdrawal feature, affecting an amount as high as $150 million. This chain reaction highlights the complex interdependencies among various projects within the DeFi ecosystem.

The operating model of the Smart Pool essentially involves frequent operations among various high-yield lending protocols, using complex combination strategies to achieve high returns. However, this model also amplifies risks, as any problem in any link could lead to the collapse of the entire system.

Insiders point out that the Smart Pool should improve operational transparency, publicly disclose the whereabouts of each fund and investment strategies, allowing users to make informed choices. Some projects have not performed ideally in this regard, especially when failing to disclose information in a timely manner regarding funding directed towards controversial projects.

In the long run, the Smart Pool product faces sustainability development challenges. Although the current cycle lending model can bring high short-term returns, it lacks long-term stability. The industry has begun to explore more complex products based on options combination strategies, synthetic asset arbitrage, etc. These products draw on the mature models of traditional finance and may represent the future direction of development.

This incident serves as a reminder for investors to cautiously assess the risks of DeFi projects. Especially for Smart Pool products, users should fully understand their operational mechanisms and potential risks, avoiding the blind pursuit of high returns while neglecting security. At the same time, project teams should enhance security management and increase transparency to contribute to the healthy development of the DeFi ecosystem.