The lending giant is expanding its asset listing criteria beyond financial risk to include cybersecurity and architecture, and wants the rest of DeFi to follow.
Aave clears final $30M hacker positions tied to the $293M KelpDAO exploit as frozen ETH and legal battles still threaten recovery.
Aave announced that Arbitrum DAO had voted in favor of unlocking and liquidating the stolen ETH from the KelpDAO hack.
Aave entered April 2026 as DeFi's most trusted lending protocol. It is ending the month navigating the most damaging crisis in its history — one that did not require a single line of its own code to be broken.
Aave has liquidated attacker rsETH positions, securing collateral as part of its recovery process following the April exploit.
On May 4, decentralized finance protocol Aave filed an emergency motion to lift a restraining notice that has frozen $71 million in recovered ethereum. Key Takeaways: Aave filed a May 4 motion to vacate a court order freezing $71 million in ETH recovered from a recent exploit.
In a 30-page response filed Tuesday, attorneys for victims of three North Korea terrorism cases reframed the April 18 Aave hack as fraud rather than theft — a distinction that could give the attackers legal title to the borrowed crypto.
The filing challenges a New York restraining notice that froze ETH on Arbitrum after the rsETH exploit, with Aave arguing the funds belong to users, not North Korea judgment creditors
Aave filed an emergency motion in a New York court to overturn a restraining notice which is blocking the transfer of 30,766 ETH intended to compensate victims of the Kelp DAO hack.
Aave has become so crucial to defi that it is now viewed as too important to fail, according to a Messari research analyst.
Aave's recovery shows demand returning, but reliance on coordinated support signals rising risk.
Aave entered April 2026 as DeFi's largest lending protocol. By mid-month, it was managing the fallout from one of the most damaging exploits in its history — and the on-chain data is now revealing just how deeply the event disrupted the protocol's core activity.