DeFi Experiences Record Losses Exceeding $606 Million in Under Three Weeks

Decentralized Finance (DeFi) has suffered significant setbacks, losing over $606 million across multiple protocols in less than three weeks, marking its worst month on record. According to NS3.AI, the majority of these losses, approximately 95%, were attributed to incidents involving Drift and Kelp DAO. Drift's vulnerabilities were exploited through social engineering and governance weaknesses, while Kelp DAO faced a bridge exploit that targeted its off-chain infrastructure. The breach at Kelp DAO subsequently impacted lending markets, resulting in Aave incurring an estimated $246 million in bad debt and reducing the total value locked by more than $13 billion within a span of two days.