DeFi Security at Risk as AI Advances in Hacking Capabilities, Warns Expert
DeFi isn't safe anymore because AI is becoming 'superhuman' at hacking, security chief warns

Image: Coindesk
Manuel Aráoz, CEO of OpenZeppelin, has declared decentralized finance (DeFi) unsafe due to AI's enhanced hacking abilities. Over $1.1 billion has been lost to DeFi hacks in the past year, coinciding with a decline of more than $20 billion in DeFi's total value locked.
- 01OpenZeppelin CEO Manuel Aráoz warns that AI coding agents are now 'superhuman' at identifying vulnerabilities in smart contracts.
- 02DeFi's total value locked has dropped by over $20 billion in 2023, reflecting both market conditions and security concerns.
- 03In the past year, DeFi hacks have resulted in over $1.1 billion in losses, including the significant $292 million exploit at Kelp DAO.
- 04The AI model Claude Mythos can autonomously discover and exploit software vulnerabilities, raising alarms about DeFi's security framework.
- 05DeFi's transparency, once seen as a strength, may now become a vulnerability as AI can quickly identify and exploit weaknesses.
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Manuel Aráoz, the CEO of OpenZeppelin, has raised alarms regarding the safety of decentralized finance (DeFi), stating that AI coding agents have become 'superhuman' in their ability to find vulnerabilities in smart contracts. This warning comes amid a significant decline in DeFi's total value locked, which has dropped by over $20 billion this year. The sector has also faced substantial security breaches, with more than $1.1 billion lost to hacks in the past year, including notable incidents at Kelp DAO and Step Finance. Aráoz emphasized the asymmetric nature of smart contract security, where defenders must fix every bug while attackers need only one exploit to succeed. The emergence of advanced AI models like Claude Mythos, which can autonomously identify and weaponize software flaws, poses new challenges for DeFi's security, as the rapid pace of AI could outstrip human efforts to patch vulnerabilities. This situation raises pressing questions about the future of DeFi security, particularly given its transparent nature, which may now be exploited by AI systems faster than defenses can respond.
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The decline in DeFi's total value locked and the significant losses from hacks may deter investors and users from participating in DeFi platforms.
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