JPMorgan Says DeFi Security Risks and Flat TVL Weaken Institutional Appeal

JPMorgan said DeFi security risks and flat ETH-denominated TVL growth are weakening institutional interest after the KelpDAO incident erased about $20 billion in TVL within days. JPMorgan said attackers minted unbacked rsETH, used it in lending protocols, and left about $200 million in bad debt. JPMorgan added that capital is moving toward liquid assets such as USDT during uncertainty, while DeFi TVL has recovered only in USD terms.

ETH-3.87%
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