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DeFi protocols purge low-activity 'ghost chains' after $1.3B exploits, sparking debate on security impact.

Market News
31 Aug 2026
AMBCrypto
View Source
Neutral
DeFi protocols purge low-activity 'ghost chains' after $1.3B exploits, sparking debate on security impact.

In H1 2026, DeFi hacks caused $1.3 billion in losses, with over 40% from KelpDAO and Drift Protocol breaches exploiting infrastructure flaws. In response, Aave and LayerZero have cut support for multiple low-activity 'ghost chains' to reduce risks linked to weak security and single-verifier setups. Experts are divided: some see the purge as necessary to strengthen security and reduce attack surfaces, while others warn it may harm new chains and leave major exploit vectors unaddressed. The industry is now balancing growth ambitions with tighter security amid rising cross-chain threats.

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