WEB3
by BSC News
January 10, 2023
The industry lost over 500% more year-to-year compared to 2021.
Pride goeth before destruction. Decentralized Finance (DeFi) crashed back to earth in 2022. The whole industry got hit with a reality check to the tune of nearly $48 billion in losses.
From the collapse of Centralized Exchanges (CEX) like FTX to the infamous unraveling of Terra’s algorithmic LUNA stablecoin, billion-dollar hits kept coming and coming in 2022. A new report from DEFIYIELD Security analyzed the top ten major loss of funds across DeFi in 2022.
The largest losses--like the Terra Luna or Celsius collapses--were emblematic of the most common places losses occurred: stablecoins and centralized exchanges. In the case of Luna, the stablecoin became entirely unstable and saw a loss of $40 billion, by far the largest collapse in 2022. Celsius, like FTX, was a centralized exchange that declared for bankruptcy and led to over $1 billion in DeFi losses.
Several other projects also saw losses of around $1 billion, with no other project coming close to the destruction of Luna.
Here are the top 10 losses of 2022 in DeFi:
Compared to 2021, where the industry lost just 8.7 billion, the over $47 billion lost in 2022 is crippling. That’s an over 500% increase! The industry has definitely taken a black eye leaving 2022, but oddly enough, there is still plenty to be bullish about.
For a full review of the report from DEFIYIELD Security, see it here.
DEFIYIELD is a smart contract auditing provider that began in July 2020. They focus on checking the security of yield farming projects and the world's only DeFi cross-chain asset management protocol based on machine learning techniques. As an industry leader in auditing, DEFIYIELD is pushing the standards with its approach to audits. As exploits and scams appear across the ecosystem, the work from DEFIYIELD is providing relief to investors and developers.
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