Aave
Aave leads $101M DeFi rescue effort to restore rsETH backing after Kelp hack
Decentralized finance protocols have pledged more than $101 million in Ether to stabilize rsETH after the $293 million Kelp DAO exploit disrupted lending markets.
DeFi United: Aave Leads $292M Exploit Recovery Effort to Stabilize Crypto 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.
Spark Protocol Explodes to Yearly High After Massive $1.3B Capital Rotation from Aave
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.
Aave rallies DeFi partners to contain fallout from $292 million KelpDAO hack
Industry players are coordinating a recovery effort as the year's biggest crypto rattled Aave, with Lido and EtherFi being firsts to offer aid.
DeFi protocols move to restore rsETH backing as Aave pauses markets amid growing risk
Aave paused rsETH markets as DeFi protocols move to cover a 100,000 ETH shortfall and prevent bad debt.
Aave Suspends rsETH Reserve Operations on Ethereum, Arbitrum
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.
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.
