Aave Leads DeFi Rescue Effort Following $292 Million KelpDAO Hack

On April 24, Aave, in collaboration with multiple institutions, launched the “DeFi United” rescue plan to address the approximately $292 million loss caused by a vulnerability attack on KelpDAO, aiming to prevent the spread of bad debts. The attack originated from a vulnerability in the LayerZero integration, where hackers forged uncollateralized rsETH and borrowed approximately $190 million in assets from Aave, leading to collateral distortion and triggering a bank run, causing the platform’s total value locked (TVL) to evaporate by about $10 billion at one point. Currently, Lido Finance, EtherFi, and founder Stani Kulechov have proposed funding plans; Arbitrum has frozen some funds, but the remaining assets have been transferred via THORChain, making recovery challenging. The focus is now on joint funding efforts to “plug the holes” and stabilize the DeFi lending system.

AAVE0.76%
ZRO0.63%
ARB2.59%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin