In the bull market of 2022, my friend has been paying attention to the field of DeFi (decentralized finance). He is a technical geek himself and is very interested in blockchain technology, especially the various innovative ways of playing DeFi that attracted him. He feels that some concepts that are difficult to achieve in the traditional financial world have become very simple and promising in the DeFi world.

He discovered an emerging DeFi project, which focuses on a function called "liquidity mining". Users can provide liquidity to the project by providing their own crypto assets, thereby obtaining rich returns. At that time, the project had just been launched, and the annualized rate of return advertised was frighteningly high, reaching hundreds or even thousands of percentages. Xiao Zhao was moved and felt that this was a once-in-a-lifetime opportunity and that he should seize this wave of market conditions.

He carefully studied the white paper and technical solutions of the project and felt that the entire mechanism looked very reasonable, and the project party had a strong background. So he invested most of his crypto assets in this project, ready to make a fortune in this wave of liquidity mining. In the first few weeks, as expected, his investment doubled several times, and the rate of return was also amazing.

About a month later, the project was suddenly hacked, and the funds in the entire liquidity pool were drained in an instant, and the funds disappeared. This was the first time he experienced such a serious loss. From the initial optimism to later seeing his account balance return to zero, he was suddenly hit hard. He didn't expect that the project he had repeatedly verified would lead to huge financial losses due to a security vulnerability.

This hacker attack made him realize that although DeFi has great innovation potential, it is also very risky. However, this failure did not make him completely give up the crypto market. On the contrary, he began to choose projects more carefully and increased his research on blockchain security technology.

Since then, although he no longer participates in high-yield, high-risk projects as frequently as before, his investment strategy has become more rational and mature. Through this lesson, he gradually accumulated more experience and began to try to educate his friends around him on how to better manage risks in the DeFi field.