BXH protocol suffers from Hacker attack, resulting in a loss of $139 million, raising concerns about DeFi security and Smart Pool risks.

Recently, the decentralized finance protocol BXH experienced a serious security incident on the BSC chain, resulting in a loss of approximately $139 million in cryptocurrency assets. According to analysis by blockchain security firms, the attacker gained management privileges and transferred project assets from the BXH treasury. Currently, some of the stolen funds have been transferred to the ETH chain and other addresses.

This incident has attracted widespread attention in the industry, and people are questioning why BXH would hand over fund management rights to the attacker, as well as whether there are internal issues. The BXH official stated that the incident originated from a private key leak and offered a reward of $1 million to recover the assets.

Even more concerning is that this incident has also affected the Smart Pool projects that rely on BXH. Multiple Smart Pools have been forced to disable their withdrawal functions, with Coinwind, ranked second on Heco, being the most affected, involving associated funds of up to $150 million. Some smaller Smart Pools, having deposited funds into Coinwind for high returns, have also inevitably been caught up in this.

This chain reaction exposes the potential risks of the current Smart Pool model. Smart Pools increase yield by operating frequently across various lending protocols, but this "building block" strategy amplifies risks while enhancing returns. Any issue at any link could lead to the collapse of the entire system.

Industry insiders call for Smart Pool to increase transparency by publicly disclosing the flow of funds for each transaction, allowing investors to assess risks on their own. Some users expressed dissatisfaction with Coinwind's investment of assets into the controversial BXH, believing they would not have participated if they had been informed in advance.

From a risk perspective, Smart Pool products can be divided into three categories: low-risk single asset collateral, medium-risk liquidity tokens and platform tokens automatic compounding, and high-risk multi-layer strategy circular lending. Each additional protocol increases the layer of risk, which may be the biggest challenge faced by Smart Pools.

In the future, Smart Pool may evolve into more complex financial products, such as options combination strategies and synthetic asset arbitrage. These products have been proven sustainable in traditional finance but also require higher professional thresholds. This could provide more value for institutional investors, allowing professionals to do what they do best.

This incident once again highlights the security risks in the DeFi field and underscores the vulnerability of the current Smart Pool model. How to effectively control risks while pursuing high returns will be an important issue facing the industry.