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.
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.
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.
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