The annualized loss rate for DeFi lending protocols on Ethereum Virtual Machine (EVM) and Solana chains has decreased to 0.03% of the total value locked (TVL), according to a recent analysis. This figure, derived from DeFi Llama's data on hacks and thefts, highlights the sector's enhanced security measures, excluding incidents related to cross-chain bridges. As of May 16, 2026, the total reported losses from non-cross-chain lending incidents amounted to $30.9 million, with an actual net loss of $30.1 million after asset recovery. The daily locked funds in the lending sector stand at $99.6 billion, reflecting a book loss rate of 3.1 basis points and an actual net loss rate of 3 basis points. The improved asset recovery rate, particularly in regions with robust legal frameworks, has contributed to the sector's resilience. The data underscores the maturity of the DeFi lending ecosystem, with risk management systems and code audits significantly reducing vulnerabilities. Despite occasional large-scale thefts, the overall impact on the sector remains minimal, reinforcing the importance of diversification and risk management strategies.