A hack related to Kelp DAO has reduced the TVL in DeFi by $20 billion. The bank's analysts noted that the incident triggered an outflow from pools not related to the compromised asset. They emphasized that interconnectedness is a weak point for DeFi during adverse events. JPMorgan noted that losses from hacks in 2026 correspond to the pace of 2025. Despite improvements in smart contract audits, bridge security issues remain. The recent hacks are leading investors to move towards stablecoins, similar to how traditional investors turn to cash during periods of uncertainty. Meanwhile, Mantle (Ethereum L2), supported by Bybit, offered Aave DAO a loan of 30,000 ETH ($70 million). Additionally, Lido (an ETH staking protocol) proposes to allocate them 2,500 ETH ($5.8 million). Aave's founder, Stanislav Kulechov, also proposed a donation of 5,000 ETH ($11.6 million) to fill a $196 million protocol gap.
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JPMorgan: Vulnerabilities in DeFi and Stagnation of TVL Limit Appeal for Institutional Investors
A hack related to Kelp DAO has reduced the TVL in DeFi by $20 billion. The bank's analysts noted that the incident triggered an outflow from pools not related to the compromised asset. They emphasized...