The DeFi losses in the past three weeks have exceeded $600 million, and the Kelp incident has dragged TVL down to a one-year low.

Recent multiple security incidents have led to a loss of over $600 million in the DeFi market, with the Kelp DAO cross-chain bridge attack (approximately $292 million) further exacerbating the downturn. The total value locked (TVL) in the industry has fallen to about $82.4 billion, down approximately 25% from around $110 billion at the beginning of 2026, with a single-day retracement of about 5.6%. The lending market was hit hardest, with TVL decreasing by about 13%, while Aave froze rsETH to limit risk spread, which also caused liquidity to tighten in some stablecoin markets. The current loss distribution plan is still unclear, involving disputes among multiple parties such as LayerZero and Kelp. Preliminary analysis suggests that the attack was related to flaws in cross-chain verification configuration. The industry still faces uncertainty. (The Block)