Aave’s TVL Tanks $6.6 Billion as Kelp DAO Hack Sparks Bad Debt and Structural Fears

Aave’s TVL Tanks $6.6 Billion as Kelp DAO Hack Sparks Bad Debt and Structural Fears

The fallout from the $292 million Kelp DAO exploit landed hardest at Aave, DeFi’s largest lending protocol. After draining Kelp’s bridge on April 18, the attacker deposited the 116,500 stolen rsETH into Aave V3 as collateral and borrowed substantial amounts of wrapped ETH against it, saddling the protocol with an estimated $196 million in bad debt. Amid contagion fears, Aave’s total value locked collapsed from $26.4 billion on April 18 to nearly…

Kelp DAO Hack Sparks Losses Across Aave and DeFi

Kelp DAO hack drains $293M from rsETH bridge Aave total value locked falls to $6.6B–$8B as markets react Cross-protocol risk forces Aave to freeze and adjust rates When just one DeFi hack causes other protocols to be affected, are we in fact uncovering a liquidity risk that the market has been underestimating? The exploit of a single bridge opened the door to a host of subsequent developments. Over the weekend, Kelp DAO’s rsETH bridge, powered b…

DeFi TVL Plummets Across Top Chains After KelpDAO Hack

The fallout from the $293 million KelpDAO exploit over the weekend has spread across the DeFi ecosystem, with Total Value Locked (TVL) across several chains dropping significantly in the last 24 hours. According to data from on-chain analytics platform DeFiLlama, at least 126 of the networks it tracks were in the red, with CosmoHub the hardest hit, having lost more than 1,500% of its TVL in that period. A Broad-Based Retreat Across Major Chains …

AAVE price turns bullish as team moves to contain the KelpDAO exploit

Aave TVL Plummets 35% as $9 Billion Exits After $300M KelpDAO Hack

Hackers tricked Kelp’s cross‑chain bridge into sending 116,500 rsETH to their wallet. About $200 million in stolen tokens was dumped into Aave as collateral. Aave’s TVL dropped to $17.56 billion, while its token declined roughly 20%. A big crypto hack rattled the DeFi sector, prompting over $9 billion to be withdrawn from the lending platform Aave. The withdrawals came after a weekend hack that drained nearly $300 million from a DeFi project (Ke…

DeFi sector in $14B meltdown as $290M rsETH hack fallout burns Aave

The DeFi sector is reeling from the effects of a suspected North Korea-linked hack which has spread to multiple protocols and saw DeFi poster child Aave’s TVL drop by a third. Saturday’s incident saw $290 million worth of Kelp DAO’s liquid staking token, rsETH, stolen via the Layer Zero bridge. The loot was deposited into Aave and used to borrow $236 million of WETH. But with liquidity drained, and markets frozen, users began to panic, withdrawi…