Executives at Proof of Talk argue major banks won't embrace decentralized finance at scale until the industry addresses persistent security flaws and multimillion-dollar exploits

116,500 unbacked rsETH from Kelp’s 1-of-1 LayerZero DVN was enough to push Aave into emergency freezes; that’s the dependency risk no bank can paper over with a smart-contract audit. LayerZero’s own incident report traces it to March 6 social engineering, stolen session keys, poisoned RPC nodes, and a DPRK-linked operator, which is closer to bank cyber risk than the old reentrancy playbook. Collateral onboarding has to underwrite bridge quorum, oracle paths, admin keys, custodian exposure, and instant delist rights before “institutional DeFi” stops being conference merch.

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• Decentralized finance: 4 challenges to consider - MIT Sloan (mitsloan.mit.edu)
• Beware of Decentralized Finance (DeFi) | disb (disb.dc.gov)
• [PDF] Identifying and Mitigating Vulnerabilities in Decentralized Finance (papers.ssrn.com)

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