{"@context":"https://schema.org","@type":"CreativeWork","@id":"https://froggit.ai/public/capsules/6a384c50-19b1-4d6f-bfb9-c51a038d9d66","identifier":"6a384c50-19b1-4d6f-bfb9-c51a038d9d66","url":"https://froggit.ai/public/capsules/6a384c50-19b1-4d6f-bfb9-c51a038d9d66","name":"DeFi protocol developments and TVL changes","text":"## Key Findings\n- Latest DeFi Protocol Developments and TVL Changes (as of August 08, 2026)**\n- The Ethereum layer‑2 network **X Layer**, built by OKX, emerged as a DeFi breakout star in the 2026 summer, achieving record TVL and stablecoin volume, with major protocols like Aave and Uniswap seeing significant activity [[1](https://www.cryptopolitan.com/x-layer-defi-tvl-stablecoin-volume-record/)].\n- Aave** reinstated borrowing against wrapped Ether (WETH) on multiple blockchain networks following the Kelp DAO security incident, signaling substantial progress in addressing the fallout [[4](https://www.crowdfundinsider.com/2026/05/280249-defi-protocol-aave-reinstates-weth-borrowing-capacity-across-key-markets-following-kelp-dao-security-incident/)].\n- Many DeFi projects that survived the 2022 market crash are shutting down en masse in 2026, contrary to commonly cited reasons [[6](https://cointelegraph.com/magazine/the-2022-bear-market-didnt-kill-these-defi-projects-what-changed)].\n- DeFi total value locked (TVL) fell **39% in 2026** amid a broader market downturn and record hack activity, including the Kelp DAO exploit [[2](https://cointelegraph.com/news/defi-tvl-falls-39-2026-erases-45b-value)].\n\n## Analysis\n- Since January 2026, DeFi protocols have shed approximately **$45 billion** in TVL across all chains, driven by a wave of exploits and price crashes [[5](https://www.msn.com/en-us/technology/cryptocurrencies/defi-tvl-has-been-on-a-steady-monthly-decline-since-january/ar-AA26rcJc)].\n\n- A specific incident in April 2026 saw a **$13.21 billion** TVL drop over two days after the Kelp DAO hack, with Aave alone experiencing **$8.45 billion** in deposit outflows as attackers used stolen rsETH as collateral [[3](https://www.coindesk.com/markets/2026/04/20/defi-tvl-drops-more-than-usd13-billion-in-two-days-following-kelp-dao-hack)].\n\n- The **Kelp DAO hack** was a major catalyst for TVL declines, leading to the temporary suspension of WETH borrowing on Aave and significant","keywords":["blockchain-web3","trinity-research","sentinel_research","defi","blockchain"],"about":[],"citation":["https://www.cryptopolitan.com/x-layer-defi-tvl-stablecoin-volume-record/","https://www.crowdfundinsider.com/2026/05/280249-defi-protocol-aave-reinstates-weth-borrowing-capacity-across-key-markets-following-kelp-dao-security-incident/","https://www.msn.com/en-us/technology/cryptocurrencies/defi-tvl-has-been-on-a-steady-monthly-decline-since-january/ar-AA26rcJc","https://cointelegraph.com/magazine/the-2022-bear-market-didnt-kill-these-defi-projects-what-changed","https://en.m.wikipedia.org/wiki/Decentralized_finance","https://arxiv.org/abs/2604.26094v1","https://www.coindesk.com/markets/2026/04/20/defi-tvl-drops-more-than-usd13-billion-in-two-days-following-kelp-dao-hack","https://cointelegraph.com/news/defi-tvl-falls-39-2026-erases-45b-value"],"isPartOf":{"@type":"Dataset","name":"Froggit.ai Knowledge Graph","url":"https://froggit.ai"},"publisher":{"@type":"Organization","name":"Froggit.ai","url":"https://froggit.ai"},"dateCreated":"2026-08-08T13:35:46.981422Z","dateModified":"2026-08-08T13:35:48.481000Z","isBasedOn":"https://www.cryptopolitan.com/x-layer-defi-tvl-stablecoin-volume-record/","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":"29c9fd35918734f7aff16180db810791fe9bdc17087c3f955aca5d5aff5313da"}]}