I would be surprised if a small amount of green didn't cause an immediate crisis. There is now a crisis with Aave in crypto. All the big players are panic-selling and pulling their funds out of DeFi.


To briefly summarize, those who found the vulnerability in Kelp DAO minted 116,500 rsETH out of thin air, used it as collateral on the Aave lending platform, and roughly lent out $290 million worth of WETH, essentially creating a fake version and taking the real one, draining Aave’s treasury... So, there’s about $300 million in losses at Aave.
Then, everyone started panic-withdrawing their funds from Aave. I don’t know how rational it is, but since everyone pulls out and if I end up last, they won’t give me my money, Justin Sun, exchanges, and others withdrew $6 billion worth of crypto, increasing the panic even more.
So much so that even liquidity in unrelated Solana lending platforms dropped, as people withdrew their funds without understanding what was happening.
While DeFi season was expected, it turned into crime season.
AAVE-16.36%
SOL-2.75%
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