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Binance Research: April DeFi Exploits Trigger $13 Billion in Outflows as Leverage Hits 2021 Highs

According to a report from Binance Research, the decentralized finance (DeFi) sector experienced approximately $13 billion in outflows during April, primarily triggered by a series of high-profile exploits. This significant capital flight sharply reduced the total value locked (TVL) across protocols and pushed the on-chain leverage ratio to approximately 38%, a level reminiscent of the 2021 bull market cycle. Binance Research highlights that this spike in leverage was not driven by a genuine recovery in underlying borrowing demand but rather by the contraction of the collateral base. Despite the recent broader market pullback, the report notes that substantial deleveraging has yet to occur, suggesting potential volatility ahead as the market remains highly leveraged without the support of organic growth in credit demand.
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