In April 2026, a $292 million exploit on KelpDAO’s LayerZero bridge triggered a massive withdrawal of $8.45 billion from Aave within 48 hours, marking the largest liquidity crisis in DeFi history. The crisis forced an emergency bailout of $300 million, including 25,000 ETH from the Aave DAO and 5,000 ETH personally from founder Stani Kulechov, to prevent insolvency. Kulechov defended the protocol's resilience but acknowledged the flaw originated from third-party dependencies, not Aave's core code. To address these vulnerabilities, Aave plans a major V4 upgrade introducing a modular star system to isolate risks and prevent future contagion, though questions about insurance coverage remain.
Following a $290 million breach of the KelpDAO rsETH bridge, Aave has introduced a comprehensive risk management framework to strengthen security across its lending platform. The new protocol sets unified standards for asset security, bridge vulnerab...
The CoinDesk 20 Index fell 1.4% to 1708.48, with every asset trading lower. Aave (AAVE) and Uniswap (UNI) were the biggest decliners, dropping 2.6% and 2.9% respectively. Ethereum (ETH) and SUI saw smaller declines of 0.6%. This broad market weakness...
Cryptocurrency markets are experiencing mixed price changes, with Bitcoin trading around $62,754, slightly down by 0.21%. Ethereum and several altcoins like Zcash and Velvet have seen notable gains, with Zcash up 12.68% and Velvet surging nearly 25%....
After a major DeFi exploit in April targeting KelpDAO's bridge, Aave faced an $8.45 billion withdrawal wave but remained operational thanks to emergency support from its DAO and founder Stani Kulechov. The incident exposed systemic risks from interco...
A wallet identified as 0x1be4 borrowed about 18,000 ETH from the Aave lending protocol over two days and transferred the entire amount to Binance. This move is notable because the ETH was borrowed, not from existing holdings, suggesting a leveraged p...
