Nexus Mutual founder Hugh Karp noted that the lack of insurance is one of the main factors hindering DeFi's mass adoption. Billions of dollars flow through decentralized finance protocols, but most investors remain unprotected.



For example, in April 2026 alone, the sector suffered over $600 million in losses due to the Drift and Kelp DAO hacks. Since DeFi's inception, uninsured lending protocols have lost $7.7 billion in attacks, according to DeFiLlama.
DRIFT-3.92%
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