 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Sang Jin] The decentralized finance (DeFi) sector, once seen as a key driver of innovation in the cryptocurrency market, is facing growing challenges amid declining yields and heightened security risks.
According to industry sources and Bloomberg on February 17, Drift Protocol, a derivatives exchange built on the Solana blockchain, attributed a recent $285 million hack to a North Korea-linked hacking group.
The attackers reportedly spent months building credibility by posing as a quantitative trading firm. Since late 2025, they approached Drift-related personnel at major global crypto conferences, showcasing technical expertise and depositing over $1 million in funds to gain trust.
After establishing relationships, the hackers infiltrated internal systems by distributing compromised wallet applications and malicious code repositories, ultimately gaining access to sensitive infrastructure.
Beyond security concerns, DeFi is also losing its appeal due to falling returns. Yields on DeFi lending products have dropped below those of traditional financial instruments such as government bonds, accelerating capital outflows from the sector.
On Aave, the world’s largest decentralized lending protocol, yields on the dollar-pegged stablecoin Tether have declined to around 2.45%, highlighting the diminishing attractiveness of DeFi investments.
The combination of security vulnerabilities and weakening returns is raising concerns about the sustainability of the DeFi ecosystem.
AlphaBIZ Kim SangJin(ceo@alphabiz.co.kr)
