Aave records $6 billion TVL drop as Kelp hack exposes structural risk at DeFi lender
CoinDesk·3h ago·Fear
What Happened
Aave protocol experienced $6.6 billion total value locked withdrawal following a Kelp bridge hack. Attackers stole 116,500 rsETH tokens worth $292 million and deposited them as collateral on Aave V3, borrowing approximately $196 million in wrapped ether. The AAVE token fell 16% to $92, with liquidations spiking on weekend. The incident exposes structural risks in DeFi lending protocols dependent on external token collateral.
Key Entities
AaveKelprsETHDeFibridge hack116,500 rsETH$6.6 billionAAVE tokenAave V3EigenLayer