April 20, 2026

The DeFi sector has suffered another major blow. The top lending protocol AAVE was hit because KelpDAO was attacked, which led to hackers massively issuing rsETH; then the hackers used the issued rsETH to borrow from AAVE nearly 300 million in funds, effectively stealing AAVE users’ deposits indirectly. As of now, no one has come out to take responsibility for the risk. First, the hackers attacked KelpDAO, an Ethereum cross-chain protocol, but the losses were borne by AAVE, indicating inadequate risk management. Since the end of DeFi Summer, the overall DeFi market has been in poor shape. Although relatively solid infrastructure has been built, follow-up development has lacked momentum, and infrastructure projects have been repeatedly pinpointed and breached by hackers.
Let’s talk about the market: after more than a week of a small-cap rally driven by imitation “risk control” pump tactics, RAVE’s this crazy coin finally finished running through its...