The decentralized finance (DeFi) sector is reeling from significant security breaches, with Balancer v2 and Stream Finance suffering losses of $128 million and $93 million, respectively. These incidents have prompted Gauntlet to propose a temporary halt on USDC, USDS, and USDT markets on Compound to mitigate further risks. The attacks underscore the vulnerabilities inherent in DeFi's interconnected 'composability' model, which can exacerbate risks during market downturns. Experts caution that the complexity of smart contracts and financial engineering in DeFi poses significant risks, potentially driving institutional investors towards simpler, more secure assets like Bitcoin.