Despite the bounce from the $90-demand zone, selling pressure and momentum could send AAVE to new local lows.
Aave founder has also backed the effort with a personal ETH pledge.
Spark Protocol deposits have recorded a net inflow of $2.4 billion as investors rotate to safety.
Aave's founder has pledged 5,000 ETH of his own money as a growing DeFi coalition races to contain the fallout from the KelpDAO exploit.
Aave launched "DeFi United" with commitments from Lido, EtherFi, Ethena, and others to cover the rsETH shortfall created by the $292 million KelpDAO bridge exploit.
On April 18, 2026, a cybercriminal discovered and exploited a critical flaw in KelpDAO's LayerZero bridge infrastructure, fabricating 116,500 rsETH tokens without any legitimate underlying assets.
Decentralized finance protocols have pledged more than $101 million in Ether to stabilize rsETH after the $293 million Kelp DAO exploit disrupted lending markets.
Aave and several leading crypto firms have launched a coordinated recovery initiative to stabilize decentralized finance (DeFi) markets after a massive $292 million exploit disrupted the sector. The effort, called DeFi United, focuses on restoring the collateral backing of rsETH, a yield-bearing Ethereum (ETH) derivative token at the center of the incident.
Capital Migration: Spark Protocol added $1.3 billion in liquidity over the past week, raising its Total Value Locked (TVL) above $5 billion. Impact on Aave: The leading platform Aave suffered outflows of $15 billion following the KelpDAO hack, reducing its TVL from $25 billion to $15.15 billion.
Industry players are coordinating a recovery effort as the year's biggest crypto rattled Aave, with Lido and EtherFi being firsts to offer aid.
Aave paused rsETH markets as DeFi protocols move to cover a 100,000 ETH shortfall and prevent bad debt.
Aave suspended rsETH reserve operations across Ethereum, Arbitrum, and additional networks following an incident reported on April 20, 2026. The action represents a targeted reserve-level response rather than a full protocol shutdown, affecting how users can borrow against or supply rsETH collateral on multiple chains.