Aave and LayerZero Purge Ghost Chains Amid DeFi Security Fears

A recent wave of DeFi hacks has led to a major industry shakeup as lending protocol Aave and interoperability player LayerZero take steps to mitigate risks.

The two protocols have axed support for so-called 'ghost chains,' which are low-activity networks that have been flagged as potential security threats. This move is in response to high-profile hacks, including the KelpDAO breach, which resulted in $292 million in losses.

Experts are divided on whether this purge will be effective in reducing DeFi exploits. Some argue that it will help reduce the attack surface of DeFi, while others believe that it may have unintended consequences and leave more significant risks untouched.