Since the beginning of 2021, DeFi protocols have suffered up to $156 million in losses from attacks.

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Since the beginning of 2021, DeFi protocols have suffered up to $156 million in losses from attacks.

The attacks targeting the decentralized finance (DeFi) industry caused $156 million in losses, while the total loss of the entire crypto market, according to blockchain data analytics firm CipherTrace is $432 million.

This amount of damage is higher than the total loss from attacks on the DeFi protocol for all of 2020. The $156 million figure doesn't even include "DeFi-related" scams (DeFi- related fraud) worth $83.4 million.

DeFi is a decentralized industry with a focus on protocols using blockchain technology. Transactions are completely processed by smart contracts instead of a traditional bank or an investment management unit, and thus will ensure fairness and transparency for all participants.

The problem, however, is that smart contracts still have to be created by developers: the risk on the part of hackers is great, but if developers create a system of protocols that allows them to secretly withdraw funds at will, what about secret? It can be said that DeFi is inherently a form of high-risk investment, even in an inherently risky financial ecosystem.

According to data from DeFi Pulse, TVL in DeFi is now $85 billion compared to $16 billion on January 1, 2021. This has attracted a lot of hacker groups with big deals like: Yearn.Finance ($11 million) in February, Roll ($5.7 million) in March, EasyFi, Furucombo, Dodo, etc.

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