Crypto users are choosing juicy yields over protection, putting billions at risk of hacks
Crypto users are increasingly prioritizing high yields over insurance protection, exposing billions to hacks. Despite the growth of decentralized finance (DeFi), less than 2% of the total value locked is insured, leaving users vulnerable. The shift in attack strategies has made it difficult for insurance protocols to keep pace, resulting in significant financial losses.
- ▪Less than 2% of DeFi's total value locked is insured, exposing users to risks.
- ▪In April 2026 alone, over $600 million was lost due to security events.
- ▪Many DeFi users prioritize yield over protection, leading to a lack of insurance uptake.
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| Original publisher | CoinDesk |
| Canonical URL | https://www.coindesk.com/business/2026/05/16/crypto-users-are-choosing-juicy-yields-over-protection-putting-billions-at-risk-of-hacks |
| Publication time | Sat, 16 May 2026 14:00:00 +0000 |
| Retrieval time | 2026-05-16T14:10:18.705Z |
| Last seen | 2026-05-16T14:10:21.580Z |
| Headline source | Publisher (no WeSearch rewrite) |
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| Summary | WeSearch · cerebras-chat (WeSearch summarizer) |
| Summary source text | contentText |
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| Publisher visit | Yes — open original |
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| Retrieval / RAG | May the content be exposed for third-party retrieval-augmented generation? | Not asserted |
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Opening excerpt (first ~120 words) tap to expand
FinanceShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailCrypto users are choosing juicy yields over protection, putting billions at risk of hacksDeFi insurance protocols debuted with huge ambitions during the 2020 crypto boom. But as hacks evolved and users chased yields over protection, most of the sector collapsed under the same risks it was built to cover.By Omkar Godbole, Olivier Acuna|Edited by Aoyon Ashraf May 16, 2026, 2:00 p.m. 4 min readMake preferred on DeFi insurance has not been all it was hyped up to be back in the early 2020s. Insurance.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at CoinDesk.
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