The amount of money lost in hacks decentralized financing (DeFi) projects more than doubled to $ 1.3 billion in 2021, with centralization being the most common vulnerability, Certik said in its first state of DeFi security research report.
- While the lost value soared 160%, the amount was a smaller proportion of the total than in 2020 due to the growth of the DeFi market, the security company said in the report. published Wednesday. Loose funds represented 17% of total market capitalization, according to the report.
- The total locked-in value (TVL) in DeFi protocols at the end of 2021 was $ 243.88 billion, up from $ 18.29 billion the year before, according to defecation The data. This means that bleed-in decreased to 0.5% TVL last year from 2.78% in 2020.
- Centralization was by far the most common vulnerability, the security firm said. Certik identified 286 discreet centralization risks across the 1,737 projects it audited, including privileged property. For example, some projects were gutted when hackers obtained private keys that gave them full control over smart contracts. This would probably have been avoided by using multi-signature wallets or DAO instead of one or a set of private keys.
- The second most common vulnerability was the lack of event emissions, followed by the use of an unlocked compiler version, code lacking proper input validation, and dependency on the regard to third parties. An event emission is information produced by a smart contract during its execution.
- The report also found that Ethereum was overtaking the Bitcoin network in terms of fee income. It now generates more than 64 times the revenue of Bitcoin and 4 times the number of daily transactions. But Ethereum has also suffered from its success, as high transaction fees sent users to other platforms.
- Certik noted the rise of Ethereum alternatives, such as Binance Smart Chain. Binance’s Layer 1 protocol saw TVL rise 31,000% to $ 21 billion, Certik said.
- The security company raised $ 80 million in a Series B2 fundraiser in December 2021, bringing its valuation to $ 1 billion.