JPMorgan: Frequent DeFi vulnerabilities and stagnant TVL continue to undermine institutional allocation willingness

ChainCatcher news, according to The Block, JPMorgan analysts stated that the frequent DeFi security incidents and the stagnation of total locked value (TVL) growth denominated in ETH continue to limit institutional interest in DeFi. The report says that a recent cross-chain bridge attack related to Kelp DAO caused about $20 billion of DeFi TVL to evaporate within a few days. The attacker minted approximately $292 million of unsecured rsETH and then used Aave to pledge and borrow actual ETH, resulting in about $230 million in bad debt. JPMorgan also noted that after security incidents, users tend to shift to Tether’s USDT as a safe haven.