coin-img-BTCBTC+0.30%coin-img-ETHETH-1.22%coin-img-SOLSOL-0.01%coin-img-USDCUSDC+0.01%coin-img-HOGRUNHOGRUN+10,862.10%coin-img-SMARTTOOLSSMARTTOOLS+1.52%coin-img-XRPXRP+1.43%coin-img-CHIPCHIP-14.35%coin-img-BTCBTC+0.30%coin-img-ETHETH-1.22%coin-img-SOLSOL-0.01%coin-img-USDCUSDC+0.01%coin-img-HOGRUNHOGRUN+10,862.10%coin-img-SMARTTOOLSSMARTTOOLS+1.52%coin-img-XRPXRP+1.43%coin-img-CHIPCHIP-14.35%coin-img-BTCBTC+0.30%coin-img-ETHETH-1.22%coin-img-SOLSOL-0.01%coin-img-USDCUSDC+0.01%coin-img-HOGRUNHOGRUN+10,862.10%coin-img-SMARTTOOLSSMARTTOOLS+1.52%coin-img-XRPXRP+1.43%coin-img-CHIPCHIP-14.35%coin-img-BTCBTC+0.30%coin-img-ETHETH-1.22%coin-img-SOLSOL-0.01%coin-img-USDCUSDC+0.01%coin-img-HOGRUNHOGRUN+10,862.10%coin-img-SMARTTOOLSSMARTTOOLS+1.52%coin-img-XRPXRP+1.43%coin-img-CHIPCHIP-14.35%

Aave Unveils "DeFi United" Backstop Plan After $292M KelpDAO Exploit

BlockBeats reported on April 24 that Aave has teamed up with several institutions to roll out "DeFi United," a rescue initiative aimed at containing roughly $292 million in losses tied to the KelpDAO vulnerability exploit and preventing bad debt from spreading. The incident was traced to a flaw in the LayerZero integration. Attackers allegedly minted uncollateralized rsETH and used it to borrow about $1.9 billion in assets on Aave, distorting collateral valuations and sparking a bank run. Aave's total value locked (TVL) temporarily fell by around $10 billion. Lido Finance, EtherFi, and Aave founder Stani Kulechov have floated a capital injection proposal. Arbitrum has frozen part of the funds, but the remaining assets were routed through THORChain, complicating recovery efforts. Attention has now turned to a coordinated recapitalization to "plug the gap" and stabilize the DeFi lending market.
Selected
AAVE
AAVE+2.49%
ARB
ARB+2.63%
Disclaimer: The content above is only the author's opinion and does not represent BingX’s stance. It shall not be construed as investment advice from BingX. For details, refer to the Terms and Conditions.