The growing popularity of DeFi since 2019 has put the nascent market on the radar of cyber attackers and opportunists.
To the report published by crypto research firm Messari DeFi protocols have lost $ 284.9 million since 2019 due to cyberattacks and other exploits. According to DappRadar data, this number corresponds to 0.65 percent of the total value locked in the Ethereum-based DeFi market.
In February Messari calculated that over $284 million in DeFi was lost to hacks since 2019
At this point in time, the decentralized insurance industry only covers a fraction of TVL in DeFi. The need is ripe for the picking. pic.twitter.com/WkZVI0TuWb
Messari (@MessariCrypto) April 28, 2021
Half of the DeFi cyberattacks in Messari’s report were instant credit attacks. Cyber attackers profit from the temporary errors of price oracles in these types of attacks.
Although crypto cyberattacks generally declined in 2020, more than half of these attacks occurred in the DeFi industry. Alpha Homora and Cream Finance, which lost $ 37.5 million in 2021 with the biggest attack in DeFi history, were on the agenda.
Finally, BSC-based Uranium Finance announced that they were exposed to a cyberattack that cost $ 50 million the other day. The cyber attacker took advantage of errors in the project’s smart contract during the token migration.