DeFi needs smarter wallets to prevent overnight losses

• Cointelegraph🔴 Negative
DeFi needs smarter wallets to prevent overnight losses

Crypto markets that trade 24/7 demand automated wallet protections, not manual vigilance. Passive vaults leave people exposed to overnight liquidations.

Article Summary

**DeFi Wallet Security Crisis: Automated Protection Essential as Crypto Markets Trade 24/7** The decentralized finance (DeFi) ecosystem faces a critical vulnerability as cryptocurrency traders suffer devastating overnight losses due to inadequate wallet protection systems. With Bitcoin, Ethereum, and altcoin markets operating continuously without traditional market hours, passive vault strategies expose investors to sudden liquidations while they sleep. The current DeFi infrastructure relies heavily on manual monitoring, leaving cryptocurrency holders vulnerable during off-hours when market volatility can trigger catastrophic position closures. Blockchain-based automated wallet protections have emerged as the crucial solution to prevent these overnight liquidations that have cost investors millions. Smart contract technology and automated risk management protocols are becoming essential tools for DeFi participants navigating volatile cryptocurrency markets. As institutional adoption grows and trading volumes increase across decentralized exchanges, the demand for intelligent wallet systems that can execute protective measures without human intervention has reached critical mass. This wallet security gap highlights the urgent need for enhanced DeFi infrastructure that matches the 24/7 nature of digital asset trading, potentially reshaping how cryptocurrency investors approach risk management in decentralized finance protocols.

Article Details

Source
Cointelegraph
Published
October 29, 2025 at 01:30 PM
Sentiment
🔴 Negative
Type
Article
Category
Article

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