Women in DeFi 2: Rug Pull Stories

In this episode we talk about rug pull with Emma Jane and Anna
Vladi. Emma comes from an options trading background and now
working on digital NFT, fashion, gaming and esports and Anna is
building a new autonomous hedge fund in DeFi that is
interoperable between chains and aggregates yield.   


Rug pull is a big a risk in crypto. The general category of risk
is Tech risk, Economic Risk and Price volatility risk and Rug
pull exists in all these risks.   


Rug pull also exists within NFTs especially when it's built on
top of web2 systems with web3 architecture or rug pull by artists
on Opensea and metadata on centralised servers.  


How to prevent rug pull from team's perspective:  


1. Use Multi sig wallet initially 


2. Audit 


3. Release dev in stages 


4. Reuse existing contracts that's trialed and tested instead of
building from scratch  


How to prevent rug pull from investor's perspective:  


1. Risk management. Think about tail risk. Think about black swan
event. the asymmetric convexity of risks.  


2. Careful where you put your money. anon vs non-anon teams 


3. Get legal opinions of projects