The cryptocurrency analysis platform, IntoTheBlock, shared, on December 14, a survey that revealed that they were lost in exploits of Decentralized Finance (DeFi) more than US$58 billion since July 2020.
According to the platform's data, during this period, 123 significant incidents related to DeFi explorations were recorded. However, this year could close as the year that recorded the lowest number of losses from this type of incident.
“Since mid-2020, a total of 123 significant incidents have been observed, with losses totaling a staggering $58,78 billion. Notably, although there have been larger losses during specific periods, 2023 is on track to have the smallest loss of funds (~$1 billion) since 2020,” he highlighted.
The analysis divided DeFi attacks into two main types: economic and technical. According to the survey, their concepts are:
Economic Exploits: These involve the strategic manipulation of vital protocol parameters, deviating from the intended use. Technical Exploits: These are carried out through adversarial manipulation of the programmatic functions of the protocol, often leading to unauthorized withdrawals of funds. Our graph vividly illustrates the prevalence of each type of exploitation over time. Although technical risks are more common, economic risks also inflict substantial damage.
In its survey, IntoTheBlock also highlighted that a more detailed analysis revealed the main reasons for the majority of losses.
“A closer analysis reveals that mechanism design flaws and smart contract bugs are the main reasons for the majority of losses, highlighting the critical need for thorough audits. Interestingly, exploits related to private key management accounted for more than $1,4 billion in losses.”
Furthermore, data has shown that lending protocols and DEXes are targeted most frequently by criminals.
🚨 Over $58 Billion Was Lost in DeFi Exploits Since July 2020! Dive into our latest Perspectives Dashboard for insights into DeFi exploits.
🔗https://t.co/PnlLwP6D07
Here's a snapshot of our findings:📊 Since mid-2020, a total of 123 significant incidents were observed, with… pic.twitter.com/YbOCzYSZ8W
— IntoTheBlock (@intotheblock) December 14, 2023
Wallet Ledger Security Alert: Vulnerability Affects DeFi Platforms
Matthew Lilley, the CTO of decentralized exchange SushiSwap, made a critical announcement, warning investors about a serious security vulnerability. According to Lilley, users should avoid interacting with any dApp until further notice. This guidance came after recognition that the SushiSwap platform was under threat from malicious software.
The source of the problem, as explained by Lilley, is linked to hardware wallet provider Ledger's GitHub.
