{"@context":"https://schema.org","@type":"CreativeWork","@id":"https://froggit.ai/public/capsules/4fe17f37-8f4a-46bc-9a57-3690f10460c5","identifier":"4fe17f37-8f4a-46bc-9a57-3690f10460c5","url":"https://froggit.ai/public/capsules/4fe17f37-8f4a-46bc-9a57-3690f10460c5","name":"DeFi protocol developments and TVL changes","text":"## Key Findings\n- DeFi TVL and Protocol Developments (Mid-2026)\n- Overall DeFi TVL fell by 39% in 2026, erasing approximately $45 billion in value, amid a broader market downturn and major exploits including the Kelp DAO hack.[1](https://cointelegraph.com/news/defi-tvl-falls-39-2026-erases-45b-value)\n- The Kelp DAO hack is specifically cited as a contributing factor to the sector-wide TVL decline.[1](https://cointelegraph.com/news/defi-tvl-falls-39-2026-erases-45b-value)\n- Solana-based yield protocol Carrot experienced a 93% TVL collapse within a month, dropping from $28 million to $1.99 million, after becoming the first casualty of the $285 million Drift exploit.[2](https://cointelegraph.com/news/defi-protocol-carrot-becomes-first-casualty-of-285m-drift-exploit)\n- The Drift exploit, amounting to $285 million, directly impacted Carrot, leading to its operational cessation.[2](https://cointelegraph.com/news/defi-protocol-carrot-becomes-first-casualty-of-285m-drift-exploit)\n\n## Analysis\n- Aave, a leading DeFi lending platform, reinstated borrowing capacity against wrapped Ether (WETH) across multiple blockchain networks following the Kelp DAO security incident, signaling progress in mitigating exploit fallout.[3](https://www.crowdfundinsider.com/2026/05/280249-defi-protocol-aave-reinstates-weth-borrowing-capacity-across-key-markets-following-kelp-dao-security-incident/)\n\n- This reinstatement occurred in May 2026, demonstrating responsive adjustments to recent security events.[3](https://www.crowdfundinsider.com/2026/05/280249-defi-protocol-aave-reinstates-weth-borrowing-capacity-across-key-markets-following-kelp-dao-security-incident/)\n\n## Sources\n- https://cointelegraph.com/news/defi-tvl-falls-39-2026-erases-45b-value\n- https://cointelegraph.com/news/defi-protocol-carrot-becomes-first-casualty-of-285m-drift-exploit\n- https://www.crowdfundinsider.com/2026/05/280249-defi-protocol-aave-reinstates-weth-borrowing-capacity-across-key-markets-following-kelp-dao-security-inc","keywords":["sentinel_research","blockchain","trinity-research","blockchain-web3","defi"],"about":[],"citation":["https://cointelegraph.com/news/defi-tvl-falls-39-2026-erases-45b-value","https://en.m.wikipedia.org/wiki/Decentralized_finance","https://www.crowdfundinsider.com/2026/05/280249-defi-protocol-aave-reinstates-weth-borrowing-capacity-across-key-markets-following-kelp-dao-security-incident/","https://arxiv.org/abs/2604.26094v1","https://arxiv.org/abs/2604.20374v1","https://arxiv.org/abs/2511.00408v1","https://arxiv.org/abs/2512.19113v2","https://cointelegraph.com/news/defi-protocol-carrot-becomes-first-casualty-of-285m-drift-exploit"],"isPartOf":{"@type":"Dataset","name":"Froggit.ai Knowledge Graph","url":"https://froggit.ai"},"publisher":{"@type":"Organization","name":"Froggit.ai","url":"https://froggit.ai"},"dateCreated":"2026-07-18T13:38:52.650105Z","dateModified":"2026-07-18T13:38:53.964000Z","isBasedOn":"https://cointelegraph.com/news/defi-tvl-falls-39-2026-erases-45b-value","additionalProperty":[{"@type":"PropertyValue","name":"trust_level","value":100},{"@type":"PropertyValue","name":"verification_status","value":"sources_verified"},{"@type":"PropertyValue","name":"provenance_status","value":"valid"},{"@type":"PropertyValue","name":"evidence_level","value":"verified_report"},{"@type":"PropertyValue","name":"content_hash","value":"213ff7ca9d4a180396ef614e71cd9360be49b8604f7a560133de4bfef64ed505"}]}