Aave deposits fall by $15B as Kelp exploit sparks flight from DeFi lender
Aave’s supplied balance has tanked since the Kelp DAO bridge exploit, as users pull funds amid uncertainty over how much of the rsETH-linked shortfall the protocol will ultimately absorb.
Aave, the largest decentralized lending protocol, has seen around $15 billion in deposits withdrawn since the Kelp Dao exploit on Saturday.
Total value supplied to Aave fell from $45.8 billion on Saturday to $30.8 billion on Wednesday, according to Aavescan data.
The decline followed an attack that drained about 116,500 restaked Ether (rsETH), worth roughly $293 million, from Kelp DAO’s LayerZero-powered rsETH bridge. The exploiter then used part of the stolen funds to borrow on Aave.