- Outflow of funds from DeFi has intensified over the past couple of weeks.
- The KelpDAO protocol hack has revealed new infrastructure risks.
Amount of blocked funds (T) In DeFi continues to decline. Since mid-April, it has fallen by approximately 14% from $172 billion to $148 billion. In the largest category of lending DeFi The sharpest decline was observed, with lending volume falling from approximately $53 billion to $40 billion during this period. Liquidity restaking protocols also showed a noticeable decline.
This decline is linked to an event that occurred on April 18. Then, hackers allegedly linked to the North Korean Lazarus Group breached the KelpDAO protocol and stole approximately $292 million (116,500 rsETH) by exploiting a vulnerability in the infrastructure rather than the smart contracts.
One exploit touched nine at once DeFi- protocols: Aave V3, SparkLend, Lido Earn, Mellow, Fluid, Compound, Euler, Upshift, Pendle PT and YT tokens, Beefy strategies. Later, another decentralized finance protocol, Volo сообщил about a security breach that resulted in the theft of nearly $3,5 million in digital assets. This is the latest in a series of platform hacks. DeFi.
While these incidents are unrelated, they add pressure to investors already closely monitoring the risks associated with bridging, data storage, and smart contract security across blockchains.
As a result, the withdrawal of funds from the protocols has been ongoing for five weeks now. DeFi, as users are not willing to further expose their assets to risk.
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