Exploitation-related Losses in DeFi Drop to a Two-year low


The DeFi space had lower losses due to exploits in 2023, which significantly aided the market’s recovery.

  • The DeFi losses due to exploits reached around $1 billion in 2023.
  • DeFi TVL as a whole rose to more than $51 billion.

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A recent piece highlights the state of the Decentralized Finance [DeFi] market as the year draws to a conclusion. The post’s data illustrated the extent of losses resulting from space-related adventures during the course of the year.


DeFi losses were lower than expected

2023 is predicted to see the lowest DeFi losses to exploits since 2020, per a post by IntoTheBlock. This year, different exploits in the DeFi space have cost about $1 billion.

Even while this amount might seem high, it is comparatively insignificant when compared to the losses of the previous two years.

According to the data, the largest-ever damages incurred due to exploits occurred in 2022, totaling over $53.5 billion. The lowest loss was recorded in 2020 at $157.2 million, while the largest loss in 2021 was close to $4 billion.


Several significant Defi feats this year

Millions of dollars have been lost as a result of multiple DeFi hacks this year; SushiSwap [SUSHI], Bonq, and SafeMoon [SFM] are just a few of the significant cases.

CryptoCaster Quick Check:

Reports began to circulate about April 9th, indicating that SushiSwap had been taken advantage of. At least one user of the Decentralized Exchange (DEX) lost more than $3.3 million.


SUSHI’s price briefly dropped as a result of the exploit, which was brought on by an approve-related error on the RouterProcessor2 contract. However, after the vulnerability was fixed, pricing returned to normal.

In February, BonqDao also suffered from a major smart contract exploit that resulted in an estimated $120 million being stolen from its protocol.

An Oracle hack compromised the Bonq protocol, allowing the attacker to control the AllianceBlock (ALBT) token’s price.

In a similar vein, SafeMoon experienced a token liquidity pool (LP) loss of about $9 million due to an exploit that occurred in March.

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By manipulating a flaw in the smart contracts, attackers were able to trade several tokens in a single transaction. Billion SFM tokens belonging to Safemoon were stolen as a result of this exploitation and were locked on an LP.

Similar to SUSHI, the SFM token saw a significant drop after the exploit.

The success of the DeFi TVL To date

Comparing the DeFi Total Value Locked (TVL) on DeFiLlama to prior years, a significant drop was observed. The graph demonstrated that the drop that started at the end of 2022 was still going strong.

But beginning in October, a little upward trend was apparent, and the rise has been steady ever since. Approximately $51.3 billion was the DeFi TVL as of this writing.

It’s unclear if the sector will be able to repel DeFi attacks in the upcoming year, even as the market appears to be improving.CRYPTOCASTER® - DECENTRALIZED FREEDOM!

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