DeFi Protocol Security Alerts: Bad Debt, Exploits, Asset Depegs

Security incidents in DeFi happen without warning. When a protocol you use gets exploited or an asset you hold depegs, fast information is the difference between acting and getting stuck.

Types of Security Incidents

DeFi security events that can impact your positions include:

• Protocol exploits: Smart contract vulnerabilities that lead to fund loss
• Bad debt events: Undercollateralized positions that create systemic risk
• Asset depegs: Stablecoins or pegged assets losing their peg
• Oracle failures: Price feed issues causing incorrect liquidations or positions
• Emergency governance: Protocol teams taking emergency action

Why Speed Matters

Security incidents unfold quickly. In some cases, you have a narrow window to:

• Withdraw funds before they are locked or lost
• Close positions before cascading liquidations
• Avoid buying a depegged asset thinking it is stable

Finding out hours later from Twitter is often too late.

Portfolio-Aware Security Alerts

Generic security feeds broadcast every incident across all protocols. Most are not relevant to you. What matters is whether the incident affects protocols you use and assets you hold.

Otomato filters security information based on your actual exposure. You receive alerts for:

• Security incidents on protocols where you have positions
• Depegs of assets you hold or use as collateral
• Bad debt events on lending protocols you use
• Emergency governance affecting your exposure

Not Just Direct Exposure

Dependencies matter. If you hold a yield token backed by an underlying protocol, an incident on that underlying protocol affects you. If your collateral is a wrapped or derivative asset, the issuer's security matters.

Otomato monitors the dependency chain, not just direct protocol usage.