Over $10B exits Aave post-$292M exploit, funds flow to safer, simpler DeFi options like Maker’s Spark and USDC.

Following a $292 million exploit at Kelp DAO that impacted Aave’s cross-chain collateral, over $10 billion has left Aave, causing its total value locked to drop by about 40%. Instead of moving to a single new platform, users have diversified their funds into safer and simpler options such as Maker-linked Spark, which has seen a 10% TVL increase, stablecoins like USDC, and real-world asset protocols. This shift reflects a broader pullback from complex shared-collateral and cross-chain structures toward more controlled risk and liquidity. The market response highlights weakened confidence in shared collateral layers rather than a direct replacement within DeFi.