Decentralized finan’s rising popularity since 2019 has seen the emerging market segment become a target for hackers and opportunistic profiteers.
According to a report by crypto research company Messari, DeFi protocols have lost about $284.9 million to hacks and other exploit attacks since 2019. This figure is about 0.65% of the adjusted total value locked of the Ethereum-based DeFi market, according to data from DappRadar.
In February Messari calculated that over $284 million in DeFi was lost to hacks since 2019
At this point in time, the decentralized insurance industry only covers a fraction of TVL in DeFi. The need is ripe for the picking. pic.twitter.com/WkZVI0TuWb
— Messari (@MessariCrypto) April 28, 2021
Almost half of the DeFi hacks covered in the Messari report were flash loan attacks, providing further evidence of it being the most popular exploit vector in the DeFi landscape. Indeed, many of the major DeFi “hacks” have been flash loan attacks that sometimes take advantage of temporary defects in price