Aave
Aave Unveils ‘DeFi United' Fund to Restore rsETH Backing After KelpDAO Exploit
Following the KelpDAO exploit on April 18, Aave introduces the “DeFi United” initiative, a coordinated effort designed to cover the rsETH (Kelp DAO restaking token) deficit. The official announcement indicates that firm commitments already exist from various ecosystem players, highlighting Lido Finance as the first public participant.
Circle Economist Proposes 50% Rate Ceiling to Snap Aave's USDC Liquidity Crisis
Some users pushed back via Aave's governance forum, fearing the changes would fuel liquidations on the lending protocol.
Circle Economist Proposes Higher USDC Rates on Aave V3 After KelpDAO Exploit
Gordon Liao, Circle's Chief Economist, submitted a governance proposal on April 22, 2026, calling on Aave to raise USDC borrow rates sharply on its V3 Ethereum Core market after a $292 million exploit against KelpDAO left the pool functionally frozen for four consecutive days.
Circle economist outlines Aave proposal as USDC liquidity dries up after DeFi exploit
Aave's USDC market faces liquidity strain, as a proposal suggests higher rates to attract capital and ease withdrawals.
Circle economist pushes for 50% USDC borrow rate on Aave after rsETH shock
Circle economist Gordon Liao wants Aave v3's USDC borrow cap pushed toward 50% and optimal utilization cut, betting sky‑high yields will unclog a rsETH‑driven liquidity crunch.
Circle Steps Into Aave Governance With Emergency Proposal After Days‑Long Ethereum Freeze
Circle intervened in Aave's governance forum to propose an emergency solution to a liquidity crisis that lasted more than four days. The $292 million hack of KelpDAO triggered a bank run that drained over $6 billion from Aave in less than 24 hours.
$15 billion out, 100% utilization, weak backstop – What broke inside Aave?
Aave's liquidity broke faster than expected
Aave (AAVE) Loses $15B in TVL Following KelpDAO Bridge Exploit and Massive Bad Debt
The leading DeFi lending protocol Aave experienced a staggering $15 billion reduction in total value locked within just four days following a critical security incident tied to KelpDAO that undermined user confidence throughout the decentralized finance ecosystem.
Aave market shows signs of strain as exchange inflows signal growing risk
7-day moving average of the exchange netflows saw a sharp uptick over the past week.
Aave outflows hit $15B as DeFi risks test Wall Street confidence
Tokenized market has grown 6x in the past two years and is expected to become a trillion-dollar market by 2028
AAVE deposits fall to $29.6B after KelpDAO exploit, $16.2B outflows recorded
The significant outflows from Aave highlight the vulnerability of DeFi systems to cascading risks, impacting market confidence and Ethereum's outlook. AAVE deposits fall to $29.6B after KelpDAO exploit, $16.2B outflows recorded.
Circle Proposes Emergency Rate Changes to Unlock Frozen Aave USDC Pool
The utilization of the USDC pool in Aave V3 Ethereum reached a critical 99.87%, leaving barely 3 million dollars in available liquidity currently. Gordon Liao, an economist at Circle, seeks to raise the maximum interest rate from 12.6% to 48.2% to incentivize massive deposits immediately.
