DeFi protocols suffered approximately 70 separate exploits in Q2 2026, roughly double the previous quarterly record, with $746 million stolen across the period. While the dollar total is below single-event historical peaks, the frequency is unprecedented and signals a systemic increase in attack surface as DeFi TVL and complexity grow. Individual exploit sizes ranged widely, affecting lending protocols, bridges, and DEX infrastructure.
For Armada's crypto desk, direct exposure depends on whether any counterparties including market makers, family offices, or miners hold collateral in or route through DeFi protocols. Armada's no-rehypothecation policy and Fireblocks custody architecture are designed to isolate collateral from such risks, but counterparty-side DeFi exposure could impair their ability to meet margin calls if an exploit hits their positions. Counterparty onboarding due diligence should screen for material DeFi protocol dependencies.