Aave records $6 billion TVL drop as Kelp hack exposes structural risk at DeFi lender
Burns Brief
The AAVE token fell 16% and deposits fled the protocol after attackers used drained rsETH as collateral to borrow wrapped ether, leaving Aave to quantify how much bad debt it is now carrying The news has rattled market participants, with bears looking to push prices lower while bulls attempt to defend key support levels. Watch $ETH $AAVE for reaction — a decisive move above or below key levels will confirm the next trend.
The AAVE token fell 16% and deposits fled the protocol after attackers used drained rsETH as collateral to borrow wrapped ether, leaving Aave to quantify how much bad debt it is now carrying.
Key Takeaways
- The AAVE token fell 16% and deposits fled the protocol after attackers used drained rsETH as collateral to borrow wrapped ether, leaving Aave to quantify how much bad debt it is now carrying