Isabella
Wed Sep 11 2024
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5 answers
988
What are the risks of proxy contracts?
As an investor or developer in the cryptocurrency space, one might ask, "What are the risks associated with proxy contracts?" Proxy contracts, a type of smart contract commonly used in decentralized finance (DeFi) protocols, can pose several risks that must be carefully considered. For instance, they may be prone to security vulnerabilities that could be exploited by hackers, leading to the loss of funds. Additionally, proxy contracts can introduce complexities in terms of governance and decision-making, potentially causing conflicts or disagreements among stakeholders. It's essential to thoroughly research and understand the risks involved before utilizing proxy contracts in any DeFi application.
