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DefiLlama is the largest aggregator of TVL for DeFi. Its data is fully open-source and maintained by a team of passionate individuals and contributors from hundreds of protocols.
Crypto Hacking Incidents Over the Past 10 Years Have Caused Over $17 Billion in Losses
According to Cointelegraph, DefiLlama data shows that there have been 518 hacking incidents in the crypto space over the past decade, resulting in cumulative losses exceeding $1.7 billion. A significant portion of these losses stemmed from private key leaks, phishing attacks, and other credential-based attacks. As smart contract security continues to improve, attackers are increasingly shifting their focus toward wallet security, signature infrastructure, development tools, and user operations. Recently, Kelp DAO’s rsETH cross-chain bridge was attacked, with approximately 116,500 rsETH tokens stolen—valued at roughly $290–293 million at the time of the incident.
DefiLlama Founder Analyzes Three Possible Resolution Paths for the Kelp DAO Incident and Corresponding Potential Bad Debt Sizes
According to a post by 0xngmi, founder of DefiLlama, following the hack of KelpDAO, Aave is facing severe pressure in handling bad debt. Currently, there are three potential solutions: First, socializing the loss across all users—this would result in an 18.5% impairment for users, generating approximately $216 million in bad debt. Aave’s Umbrella Insurance could cover $55 million, and the treasury could contribute an additional $85 million, leaving a shortfall of roughly $76 million. Second, executing a “rug pull” on rsETH holders on L2 chains—this would generate approximately $341 million in bad debt, with Arbitrum, Mantle, and Base markets suffering the heaviest losses. Third, returning assets to holders based on a pre-attack snapshot—but this approach is extremely operationally challenging, and even after Umbrella Insurance coverage, an estimated $91 million in losses would remain. Additionally, some suggest confiscating the hacker’s collateral to offset part of the bad debt. Meanwhile, Aave’s OG Security Module still holds approximately $300 million worth of AAVE tokens; applying a 20% reduction would provide an additional ~$60 million in loss coverage.
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Data: Solana, Mantle, and BSC ranked top three for net cross-chain bridge inflows over the past 7 days
According to DefiLlama data, Solana’s cross-chain bridges recorded a net inflow of $553.16 million over the past seven days, ranking first among all public blockchains. Mantle and BSC followed, with net inflows of $367.34 million and $224.11 million, respectively.
Crypto Hacking Incidents Over the Past 10 Years Have Caused Over $17 Billion in Losses
According to Cointelegraph, DefiLlama data shows that there have been 518 hacking incidents in the crypto space over the past decade, resulting in cumulative losses exceeding $1.7 billion. A significant portion of these losses stemmed from private key leaks, phishing attacks, and other credential-based attacks. As smart contract security continues to improve, attackers are increasingly shifting their focus toward wallet security, signature infrastructure, development tools, and user operations. Recently, Kelp DAO’s rsETH cross-chain bridge was attacked, with approximately 116,500 rsETH tokens stolen—valued at roughly $290–293 million at the time of the incident.
DeFiLlama Founder: If Arbitrum Prioritizes Using Seized Funds for Its Aave Market, Bad Debt Risk Could Be Significantly Reduced
0xngmi, founder of DeFiLlama, posted on X stating that after reviewing the data, if Arbitrum prioritizes seized funds for the Aave market on Arbitrum, there would be no bad debt on Arbitrum under a “loss socialization” scenario. If rsETH on the L2 faces a total loss (zero-value risk), bad debt on Aave on Arbitrum could be reduced by approximately 80%, from $88 million to $17 million.
DefiLlama Founder Responds to Aave TVL Controversy: Impact of Circular Lending Has Been Excluded
Odaily News DefiLlama founder 0xngmi posted on the X platform, stating that the current claim about Aave's TVL being overestimated due to circular lending is inaccurate.He explained that in TVL statistics, lent assets are excluded, so circular lending does not inflate the total value locked. For example, deposited assets are counted in TVL, while the corresponding borrowed portion is offset. He further added that DefiLlama has already excluded double-counting caused by collateral cycles related to Ethena, believing the related criticism lacks basis.
DefiLlama Founder Analyzes Three Possible Resolution Paths for the Kelp DAO Incident and Corresponding Potential Bad Debt Sizes
According to a post by 0xngmi, founder of DefiLlama, following the hack of KelpDAO, Aave is facing severe pressure in handling bad debt. Currently, there are three potential solutions: First, socializing the loss across all users—this would result in an 18.5% impairment for users, generating approximately $216 million in bad debt. Aave’s Umbrella Insurance could cover $55 million, and the treasury could contribute an additional $85 million, leaving a shortfall of roughly $76 million. Second, executing a “rug pull” on rsETH holders on L2 chains—this would generate approximately $341 million in bad debt, with Arbitrum, Mantle, and Base markets suffering the heaviest losses. Third, returning assets to holders based on a pre-attack snapshot—but this approach is extremely operationally challenging, and even after Umbrella Insurance coverage, an estimated $91 million in losses would remain. Additionally, some suggest confiscating the hacker’s collateral to offset part of the bad debt. Meanwhile, Aave’s OG Security Module still holds approximately $300 million worth of AAVE tokens; applying a 20% reduction would provide an additional ~$60 million in loss coverage.
DefiLlama Founder: No WETH Positions Currently Face Immediate Liquidation Risk
Odaily News DefiLlama founder 0xngmi posted on the X platform, stating that currently no WETH positions face immediate liquidation risk. weETH is approaching its liquidation price on Aave, but all these loans are collateralized with ETH, so they are safe unless interest rates rise sharply.