DeFi 2.0 Platforms Address Security Concerns After Year of Major Hacks

Following over $3 billion in hacks and exploits throughout 2022, decentralized finance protocols are implementing new security measures and insurance mechanisms collectively dubbed “DeFi 2.0.” Leading platforms have adopted formal verification methods for smart contracts, comprehensive audit requirements, and decentralized insurance pools to protect users. These developments come as traditional financial institutions show increasing interest in DeFi technology, with several major banks exploring ways to offer DeFi services within regulatory frameworks.