Aaves proposed risk framework sets tougher standards for listings, bridges, chain deployments, and automated monitoring following the KelpDAO exploit. Aave proposes new framework setting stricter standards after KelpDAO exploit.
Aave introduces comprehensive risk management overhaul following the $290M KelpDAO breach.
In April 2026, a flaw in KelpDAO's LayerZero bridge triggered $8.45 billion withdrawals on Aave in less than 48 hours, the biggest banking panic in DeFi history. Stani Kulechov, founder of Aave Labs, presented the episode as proof of the protocol's robustness at the Proof of Talk in Paris.
Uniswap (UNI), down 2.9% from Monday, joined Aave (AAVE) as an underperformer.
Aave founder Stani Kulechov has defended the decentralized lending protocol after an $8.45 billion withdrawal wave followed a major DeFi exploit earlier this year.
Stani Kulechov defended Aave's resilience after a $292 million KelpDAO LayerZero bridge exploit triggered $8.45 billion in withdrawals within 48 hours. The crisis left Aave V3 with an estimated $123.7 million in bad debt after attackers minted worthless collateral and drained real wrapped Ether.
AAVE fell 12% despite buyer-dominant activity, while oversold conditions raised rebound hopes.
Aave powers Whop Treasury, a new feature that allows Whop users to earn up to 6% APY on their balances. Funds are routed through USDT0 and a Veda vault on the Plasma network into the Aave Plasma V3 market, with instant withdrawals available.
Decentralized finance protocol Aave recently revealed that it has fully restored liquidity to its lending pools following a $300 million cross-chain exploit.
Aave is reviewing every V3 asset and rewriting listing standards after a $230 million rsETH exploit tied to KelpDAO's LayerZero-powered bridge. The attack allowed one verifier to approve a fake cross-chain message and mint 116,500 unbacked rsETH on Ethereum, creating unrecoverable loans.
On May 28, Aave Labs announced that its UK subsidiaries Push Labs Ltd. and Push Virtual Assets Ltd.
Aave has announced a major overhaul of its risk management framework following the $230 million rsETH exploit in April 2026, one of the largest decentralized finance (DeFi) attacks of the year. According to the lending protocols newly released postmortem, the incident did not result from a vulnerability in Aaves smart contracts.