JPMorgan: Frequent DeFi Vulnerabilities and Stagnant TVL Continue to Weaken Institutional Investment Appetite

JPMorgan analysts have stated that the frequent security incidents in DeFi and the stagnation of Total Value Locked (TVL) in ETH terms continue to limit institutional interest in DeFi. The report mentions that a recent cross-chain bridge attack related to Kelp DAO resulted in a loss of approximately $20 billion in DeFi TVL within a few days. The attackers minted about $292 million in uncollateralized rsETH and borrowed real ETH on Aave using it as collateral, leading to approximately $230 million in bad debt. JPMorgan also noted that after security incidents, users tend to shift towards Tether’s USDT as a safe haven.

ETH0.57%
AAVE-1.49%
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