AAVE News & Analysis

Aave (AAVE) Loses $6.6B in Deposits Following Kelp DAO Attack

Aave (AAVE) experienced a loss of approximately $6.6 billion in deposits within 24 hours following an attack on Kelp DAO’s cross-chain bridge. The vulnerability allowed an attacker to access about $292 million in rsETH, which was then used as collateral to borrow nearly $196 million in WETH from Aave. The incident raised concerns among depositors about the safety of their funds, with reports indicating the WETH pool was at 100% utilization. The event is significant as it highlights risks associated with decentralized finance platforms and the interconnectedness of DeFi protocols.