DeFi hacks shake institutional confidence as risks outpace yields
Repeated bridge exploits and shrinking yields are making institutions question whether DeFi’s risks still justify the returns, says Symbiotic’s Putiatin....
Key takeaways
- 1Eight major DeFi bridge attacks in 2026 caused $328.6 million in cumulative losses, undermining institutional confidence.
- 2DeFi yields on stablecoins like USDT (2.74%) now trail US Treasury bills (3.57%), eliminating risk premiums.
- 3Modern DeFi complexity makes risk assessment impossible; institutions lack frameworks to price hack risk accurately.
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Why it matters
India's retail investors face eroding returns in DeFi while regulatory scrutiny intensifies globally. Without functional insurance systems and risk pricing mechanisms, institutional capital—critical for DeFi's growth—will remain sidelined, limiting ecosystem maturity and adoption.
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