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Aave stabilizes liquidity as rsETH recovery cuts bad debt and restores lending confidence.

Protocol Fundamentals
18 May 2026
AMBCrypto
View Source
Bullish
pluang ai news

Aave's liquidity in major V3 lending markets is stabilizing following the rsETH recovery phase, which reduced bad debt and eased emergency restrictions on WETH collateral. Borrowing activity is normalizing, and total value locked (TVL) holds steady near $14.5 billion, signaling cautious user confidence. Despite these improvements, risks from bridge and restaking dependencies remain, prompting governance to increase security bounties to strengthen defenses against future exploits.

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