Turtle has implemented stricter risk controls on cross-chain assets following a $292 million exploit linked to LayerZero, which highlighted significant bridge-security vulnerabilities. The firm is now applying more rigorous due diligence and risk pricing, particularly for assets using lower-redundancy bridge structures. This move reflects a broader institutional shift towards prioritizing secure infrastructure, with Chainlink CCIP gaining favor due to its secure-by-default model. The DeFi sector is showing signs of recovery, with initiatives like DAO-backed liquidity injections helping stabilize collateral such as rsETH. However, liquidity providers remain cautious due to ongoing bridge-related vulnerabilities. Institutional liquidity is increasingly shifting towards audited infrastructure, with over $2 billion in TVL moving away from weaker bridge systems. This trend underscores a growing preference for security over yield, potentially fragmenting cross-chain liquidity but enhancing long-term ecosystem resilience.