Aave’s founder defends a $8.45 billion bank run as the V4 upgrade plans to rebuild the risk management system

Golden Finance reports that on June 9th, this April, KelpDAO's cross-chain bridge based on LayerZero was attacked for $292 million, triggering a deposit run of up to $8.45 billion on the DeFi lending protocol Aave within 48 hours. In response to external doubts about the protocol's risk control capabilities, Aave founder and CEO Stani Kulechov stated that this incident actually demonstrates Aave's "resilience."
Kulechov said at the Paris Proof of Talk conference that Aave V3 has withstood multiple market cycles and remained stable even under extreme conditions. He believes that recent DeFi security incidents mainly stem from third-party infrastructure rather than vulnerabilities in the protocol's own smart contracts.
However, according to risk analysis firm LlamaRisk, attackers exploited a vulnerability in KelpDAO to mint worthless collateral and deposit it into Aave, then withdrew real wETH, resulting in approximately $123.7 million in bad debt for Aave V3. To address the crisis, Aave DAO urgently allocated 25k ETH, with Kulechov himself additionally injecting 5,000 ETH, bringing the total rescue scale to about $300 million.
In response to the systemic risks exposed, Aave is planning to overhaul its risk management architecture with the V4 upgrade. The new version will adopt a modular "Hub-and-Spoke" design, replacing the traditional liquidity pool model, allowing the protocol to implement independent risk pricing for different collateral types and freeze specific collateral assets before risk spreads, reducing the likelihood of chain reactions caused by cross-chain bridge failures.
AAVE-0.98%
ZRO-6.69%
ETH-0.67%
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