Crypto & Finance · VIDEO
Aave loses $6.6 billion in deposits after Kelp hack: systemic risk for DeFi
Aave recorded a $6.6 billion deposit outflow and a 16% drop in the AAVE token after an attack exploited stolen rsETH as collateral. The incident highlights t...
KEY TAKEAWAYS
- Aave has lost $6.6 billion in total value locked and the AAVE token has dropped to $92 after the attack on Kelp.
- Hackers used $292 million in stolen rsETH as collateral on Aave V3, creating a $196 million bad debt hole.
- Aave's Umbrella reserve may not fully cover the deficit, putting stkAAVE holders at risk.
- The incident highlights the systemic risks of liquid restaking tokens and the fragility of the DeFi system.
