After the hack, most DeFi protocols see around a 96% drop in TVL.
A significant cause is the supposed loss of trust and exposed vulnerability.
There’s a famous quote that says, Why do we fall? So we can learn to pick ourselves up. Decentralized Finance protocols get hacked; some recover while some don’t. But even after they could recover the lost fund, picking themselves up is not always possible. Studies show that after the hack, most DeFi protocols fail to heal and fade away, and their TVL takes a big hit.
Defi Protocols, Hacks, and Recovery
DeFi lending protocol, Euler Finance suffered a $200 Million hack in March 2023, but they somehow managed to recoup the lost funds. At press time, the Total Value Locked (TVL) was just $114,575, around $299 Million in March. The study involving the top five hacks in dollar terms shows that TVLs at these protocols were down by at least 96%.
Source: Euler; Defillama
Beanstalk was hacked for $181 Million on April 17, 2022; TVL then was $3
We współpracy z: https://www.thecoinrepublic.com/2023/04/23/post-hack-recovery-is-hard-for-defi-protocols-majority-vanish/
