DeFiYield REKT listing shows an 18% drop in lost DeFi funds in September totaling $170 million

DefiYield, the DeFi investing and yield farming platform, tracks exploited projects across the DeFi ecosystem through its REKT database. As of January 2022, it has tracked over $60 billion in lost or stolen funds at 1,195 events including Terra Luna. Ronin, Nomad and the Wormhole Bridge.

During the same period, around US$2.4 billion was recovered, just under 5% of the total damage. Until August, most of the exploits took place outside of the Ethereum ecosystem. However, as the chart below shows, since the beginning of August, over 90% of the money losses have happened within the Ethereum network.

Source: DefiYield

A staggering $212,927,092 was lost in August, with the Nomad Bridge exploit accounting for $190 million. Other exploits included the Solana Slope wallet incident, ZBExchange, Reaper Farm, and Acala Swap. The most prominent August exit scam totaled $3.5 million from Dragoma. Several high quality rug pulls also came from two NFT platforms, HeroCat and SudoRare.

Source: DefiYield

September saw an 18% drop in funds stolen or lost, yet $170 million was still snatched from the DeFi ecosystem through exploits and hacks. The Wintermute hack accounted for most of the money lost at $160 million. Another $977,550 was lost through the same profanity-vanity-address exploit that DefiYield categorized as an “access control issue.”

Unlike other exploits such as the Boy X Highspeed exploit, which took advantage of problems with the project’s smart contract, the Wintermute/Profanity exploit resulted from poor account management.

Wintermute used a flawed tool to generate a vanity Ethereum address with reduced cryptographic security, prioritizing gas fee optimization over security. The Boy x Highspeed exploit was the second largest in September at $2,584,890.

Source: DefiYield

Three flash loan attacks made the top 10 exploits for September. New Free DAO, DAO Officials, and Cauldron all suffered flash loan attacks for $2,001,622.

Many exploits involved transferring funds to Tornado Cash, potentially corrupting the stolen funds through interaction with the sanctioned platform. However, in several major hacks, including Wintermute, the funds remained controlled by the hacker’s wallet.

So far in October, an average of $5.9 million per day has been lost in less than a week. Should the trend continue, October would break the downtrend.

The biggest exploit in October was the Transit Swap smart contract hack, which raised $29 million. However, $18.9 million has already been withdrawn, bringing DeFi’s net loss for October to just $10.1 million.

The chart below shows the downtrend in DeFi losses in 2022. While both August and September posted nine-digit losses, these months mark two of the lowest on record for the year.

Source: DeFiYield

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