@ongjunwei40
Assessing investment risks in DeFi projects after protocol exploits requires a structured framework:
Protocol Security: Evaluate the smart contract audit history, frequency of updates, and response to past exploits. Check for bug bounties or insurance mechanisms.
Team Competency: Research the team’s experience, transparency, and track record in managing crises or vulnerabilities.
Tokenomics: Analyze token distribution, vesting schedules, and incentives alignment to detect potential rug-pull risks.
Liquidity & Market Risk: Assess TVL (Total Value Locked), slippage, and dependency on external oracles or bridges prone to failure.
Community & Governance: Investigate community sentiment on X, governance participation, and decentralization level to gauge resilience.
Post-Exploit Recovery: Review compensation plans, protocol upgrades, and timelines for restoring trust.
Cross-check findings via web searches and X posts for real-time insights. High risks often stem from unaudited code or centralized control.
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