The losses from exploits in decentralized finance (DeFi) have seen a decrease in 2024, with reported losses around $1 billion. This marks an improvement from previous years when the industry faced numerous breaches. Data from July 2020 to October 2024 shows changes in crypto asset losses, with theft activities increasing through 2021 and 2022. However, the reduced losses in 2024 indicate that security improvements in DeFi protocols are working, with recent losses falling below $250 million. The biggest spike in losses occurred in April 2021, reaching over $2.5 billion, due to weaknesses in mechanism design. The Terra/Luna crisis caused a massive loss of over $50 billion, impacting over 25% of DeFi's total value locked. Price manipulation, governance attacks, and smart contract bugs have been persistent exploit vectors, with smart contract vulnerabilities causing significant losses from mid-2023 onward.
- Content Editor ( coinedition.com )
- 2024-10-25
DeFi Exploit Losses Decline Sharply in 2024: Report