CoinStats CEO Narek Gevorgyan Remains Confident "DeFi Will Mature Out Of Its Exploit-ridden Phase"

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The year 2022 is off to a terrible start for the decentralized finance industry. Although DeFi protocols remain popular, the number of exploits and thefts keeps rising. Coin stats CEO and Founder Narek Gevorgyan expects significant improvements on this front in the coming years. 

Today, the decentralized finance industry represents over USD 235 billion in Total Value Locked (TVL). It is a vast increase over the USD 110 billion recorded a year ago. But, unfortunately, there is always a second side to every story. Despite the overall growth in TVL, there is also a steep increase in exploits affecting decentralized finance protocols, products, and services.

The first two months of 2022 culminated in various hacks and missing hundreds of millions of dollars. While some heists are smaller than others - Tinyman lost USD 3 million, and Lympo got exploited for USD 18.7 million - there are far bigger numbers. For example, Qubit Finance lost USD 80 million, with Wormhole losing USD 326 million. In most recent weeks, we had the Ronin Bridge exploit for USD 600 million and the Beanstalk Farms hack resulted in a USD 180 million loss serve as good "examples". 

CoinStats CEO Narek Govergyan comments:

"There are two major problems in DeFi. Security and user interface. The best talent in the world are working on these, and I believe the community is strong enough to tackle them in a matter of years."

While it is not uncommon to expect growing pains on the security front, these losses keep piling up. It is essential to consider that 2021 was even worse, with over 50 recorded DeFi hacks and exploits.