AvengerDAO, the community-led security team on BNB Chain, reports an impressive 85% reduction in DeFi losses on the $3.5 billion blockchain in 2023 compared to the previous year.
Their focused efforts, including monitoring protocols like PancakeSwap and increasing security reports, contributed to this success. Despite BNB Chain having fewer investor deposits than Ethereum, it boasts more daily active users.
The platform faced challenges, with 12% of tokens labeled as scams in 2022, leading to the establishment of AvengerDAO.
BNB Chain gained prominence in 2021 by offering lower network fees compared to Ethereum during the DeFi summer. Despite increased investor interest, security incidents led to losses exceeding $1.1 billion in 2022, but AvengerDAO’s efforts reduced losses to $161 million in 2023.
However, the number of attacks increased by 44%. In comparison, Ethereum, with a larger DeFi market, reported over $1 billion in security incidents. Both BNB Chain and Ethereum still grapple with “rug pulls,” where project creators withdraw liquidity, leaving tokenholders at risk.
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