ChainCatcher report, according to The Block, since the KelpDAO cross-chain bridge attack in mid-April, the total value locked (TVL) in DeFi has declined by approximately 14%, dropping from around $172 billion to $148 billion. The attacker exploited vulnerabilities in off-chain infrastructure rather than smart contract flaws, stealing approximately $292 million and exposing new infrastructure risks. The outflow of funds has persisted for over five weeks, indicating that investors are broadly withdrawing marginal capital rather than targeting only the compromised protocol. Lending, the largest DeFi category, saw the steepest decline, with TVL falling from around $53 billion to $40 billion. Liquidity restaking protocols have also experienced significant declines. The KelpDAO attack demonstrates that as smart contract security improves, off-chain infrastructure is becoming a more attractive attack surface.
DeFi TVL Drops 14% Since KelpDAO Attack in Mid-April
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Summary
On-chain data shows that DeFi TVL has dropped 14% since the KelpDAO attack in mid-April, falling from $172 billion to $148 billion. The attacker exploited a flaw in off-chain infrastructure, stealing $292 million. Outflows have continued for over five weeks, with lending TVL declining from $53 billion to $40 billion. On-chain analysis reveals that liquidity restaking protocols also experienced sharp declines. The incident underscores growing risks in off-chain infrastructure as smart contract security improves.
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