Defi uses over 1.8 billion USD YTD, even though security is better, says Immunefi
Defi uses over 1.8 billion USD YTD, even though security is better, says Immunefi
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According to the latest data, defi hacks were more than $ 1.2 billion in the first quarter of this year alone, significantly more than in the first quarter of 2021
- While the security of the defi sector appears bleak, the CEO of Immunefi Blockworks said that the situation improves
According to the Defi-Bug-Bounty platform Immunefi, hacks against decentralized financial protocols have almost spoken off compared to the first quarter of last year.
In the first quarter of this year alone, over $ 1.22 billion were identified as stolen or damaged by prospective protocols. This is a 7.9-fold increase compared to around $ 154.6 million of stolen funds for the same period in 2021, as a study by Immunefi's quarterly report shows shows.
More than 77 % of the $ 1.22 billion comes from the 625 million hack of the Ronin Network-the sidechain linked to Ethereum, which is used for the blockchain game Axie Infinity-in March and the 326-million dollar hack of the Blockchain Bridge in February.
The numbers may look bad on the surface, but Immunefi said it wasn't as bad as it seems.
"The most important thing that should be kept in mind is that things look bad, but actually get better on the security side," said Mitchell Amador, CEO of Immunefi, in an interview with block works.
"Audits have become a stronger standard, every defi project is audited. They have a formal character check that is becoming the greatest standard. Almost everyone is operating buggy programs," said Amador.
In the second quarter of this year, there were less serious hacks against protocols. Amador said that the $ 100 million on Harmony Cross-Chain bridge Horizon and the $ 180 million loss of the algorithmic stable coin protocol are outliers.
"We have not experienced a dramatic event," said Amador compared to the continued liquidity crisis, the infection of lenders and industry -related layoffs that affected the entire industry.
"There were a few narrow calls at things that could have happened. Error reports on consensus weak spots that we saw on layer 1 blockchains, but were all successfully patched," added Amador.
Despite the progress, however, the threat does not decrease.
"This [Continuous Hacks] is basically an unsolvable problem," said the CEO from Immunefi. "We knew that it would go in this direction. The volatility is part of crypto, the flowing money supply would increase. The number of people with the skills would increase, it needed a sales option."
Compared to global trends, however, even a few billion dollars are a drop on the hot stone.
Youngest Estimates to around $ 32.4 billion. The global market for fraud recognition and prevention is in the order of 25 billion dollars in this year - not the fraud itself, but only the attempt to stop it.
cybercrime as a whole is cost around 6.9 trillion in 2022, so the consulting company Cybersecurity ventures. Even if Defi exploits $ 3.5 billion net until the end of the year, this would make up 0.05 % of global cybercrime.
Wache
ImmuneFi, which sees its business and function as a kind of human immune system that combats viruses, has developed into the largest bug bounty platform in the industry and offers rewards for white Hat hackers who identify susceptible code.
In contrast to Blackhats,Whitehss try to identify security gaps for a specific project and to receive a reward for drawing attention to this. Black hats, on the other hand, are those with shameful intentions that often participate in theft.
The IMUNEFI bug-bounty program offers white the opportunity to accept a reward-millions of dollars upwards-to check the code within an area for potential errors, to be submitted and paid for.
The less than two-year-old platform according to its own information protects platforms with cryptoassets worth more than $ 100 billion, including those of polygon. Chainlink and sushiswap, including other .
When asked about the possibility of overlooked errors and weaknesses, which result from a close scope within a bug bounty contract, Amador said the only way to deal with the problem is to expand the bounty program as much as possible.
"You can't get rid of [Missed bugs] but you can partially remove this by priorizing the effects instead of being outside or outside the scope," he said. "The actual concern of most of these projects is the material effect."
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The contribution Defi Exploits Top 1.8 billion $ ytd, although the security "gets better" Immunefi says is not financial advice.