A significant decline in decentralized finance total value locked (TVL) has occurred, with a 14% drop observed since the KelpDAO exploit, indicating a shift in market sentiment towards reduced risk appetite. This downturn in DeFi TVL is a direct consequence of the heightened awareness of infrastructure vulnerabilities exposed by the breach. The KelpDAO incident has highlighted the evolving nature of attacks on DeFi platforms, which may lead to increased regulatory scrutiny and potential supply-chain disruptions. As a result, market participants are reevaluating their exposure to DeFi investments, driving the outflows. The exploit has also underscored the importance of robust security measures in DeFi infrastructure, prompting a reassessment of risk management strategies1. So what matters to practitioners is that this decline signals a critical need to enhance security protocols and monitor regulatory developments in the DeFi space.