The amount lost by users and development teams of DeFi companies as a result of exploits in 2021 exceeds $680 million. This data was shared by The Block based on statistics collected using the Data Dashboard.
According to journalists, the total losses of DeFi projects from exploits reached $1.4 billion this year. However, of which $760 million was returned. In part, they were decided to be returned by the attackers themselves after a balanced dialogue with representatives of the company whose clients' money was stolen. Others were simply afraid of threats in the form of appealing to state law enforcement agencies, after which they also returned the money.
During the year, the four largest exploits on DeFi platforms thundered. Ethereum blockchain became the leader in the number of hacks 34 cases, and Binance Smart Chain took second place with 25 hacker attacks on the network. In addition, two cases were recorded on the Polygon blockchain and two more on the Avalanche network.
Of all the attacks on projects that have occurred, 34 were associated with quick loans that users take and then repay in the same transaction block. Thus, the lender knows for sure that the money borrowed from him will be repaid by the borrower. However, quick loans sometimes allow you to borrow colossal amounts for a small fee because hackers actively use them to maximize their own benefits and damage to user funds during attacks using this type of loan.
For example, in May 2021, an attacker used a quick loan to borrow 61,800 ETH (more than $270 million), thereby disrupting the operation of the system and receiving $24.5 million as a result of the cunning manipulation of amounts.
Three of the five largest attacks involved the Poly Network, which lost more than 611 million in total. Another large-scale loss of money was involved in Compound, which lost $114 million in a mistake in September this year. As a result, only half of them were returned. Other major exploits include Cream Finance, whose crackers also took advantage of a short-term loan totaling $130 million.
Note that analysts at The Block did not take into account cases of “standard” fraud, scams, and other types of deception of investors, focusing exclusively on incidents related to exploits of DeFi projects.
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