Why did DeFi protocols lose US$13 billion in total value locked?

Decentralised finance protocols lost about US$13 billion in total value locked after a series of exploits in April. Binance Research said security breaches reduced liquidity across the sector and contributed to capital outflows.

What does a 38% on-chain leverage ratio mean for DeFi?

Binance Research said the on-chain leverage ratio rose to about 38%, matching levels last seen in 2021. The increase occurred because total value locked fell faster than borrowing activity, making existing debt larger relative to available collateral.

How much did DeFi total value locked decline in April?

Binance Research said DeFi total value locked fell 10.7% month-on-month to US$82.7 billion in April. The decline followed a wave of exploits that removed liquidity from decentralised finance protocols.

What were the largest DeFi exploits reported in April?

Drift Protocol and KelpDAO recorded the largest reported losses among April's DeFi exploits. The two incidents accounted for approximately US$577 million in combined losses and were later linked by reports to North Korea's Lazarus Group.

What does the KelpDAO exploit mean for Aave?

The KelpDAO exploit created approximately US$230 million in bad debt for Aave and reduced the lending protocol's total value locked by about 50%, according to Binance Research. The incident highlighted how losses in one protocol can spread across interconnected DeFi platforms.

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DeFi exploits trigger $13B TVL exodus

Written by Heidi Cuthbert Published Jun 16, 2026, 5:35 AM

Binance Research said April's DeFi exploits led to approximately US$13 billion in total value locked outflows across decentralised finance protocols.
The on-chain leverage ratio rose to about 38%, matching levels last seen in 2021 as TVL declined faster than borrowing activity.
Researchers said deleveraging remains limited despite weaker market conditions and a sharp decline in liquidity.

Binance Research said decentralised finance protocols lost around US$13 billion in total value locked following a wave of exploits in April, contributing to a rise in the sector's on-chain leverage ratio to approximately 38%.

The research team said DeFi total value locked fell 10.7% month-on-month to US$82.7 billion in April, while borrowing activity remained relatively resilient, causing leverage levels to increase as the pool of locked capital shrank.

“Meaningful deleveraging has yet to materialise,” Binance Research said.

According to Binance Research, DeFi protocols suffered US$635.24 million in exploit-related losses during April across 28 incidents, making it the highest monthly total since the Bybit exploit in February 2025.

The findings suggest debt levels remain elevated relative to available liquidity despite the broader crypto market pullback, and following the report Binance Holdings' share price was unchanged at US$0.00.

The largest reported incidents involved Drift Protocol and KelpDAO, which together accounted for roughly US$577 million in losses and were later linked by reports to North Korea's Lazarus Group, while the KelpDAO exploit also created about US$230 million in bad debt on Aave.

Although reported crypto hack losses declined to US$68.3 million in May according to CertiK, recent incidents involving Humanity Protocol, Aztec Connect and Raydium indicate that security risks across bridges, legacy contracts and operational systems remain a significant challenge for the DeFi sector.