Aave Leads Rescue Effort After $292M KelpDAO Exploit Hits DeFi

Aave is leading a DeFi United rescue effort after the $292 million KelpDAO exploit drained 116,500 rsETH and left unbacked collateral on Aave V3. The attacker deposited the stolen rsETH on Aave and borrowed WETH against it, leaving positions that became effectively unliquidatable after rsETH lost backing. Aave’s total deposits fell from $45.8 billion to $28.6 billion, while DeFi total value locked fell from $99.5 billion to $83.7 billion since April 18. Stani Kulechov pledged 5,000 ETH, and Lido Finance, Mantle Treasury, EtherFi Foundation, and Golem proposed additional support.

AAVE-0.44%
ETH-0.94%
MNT0.2%
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