KelpDAO exploit leaves ~89.5K ETH unresolved as Aave-led ‘DeFi United’ coordinates recoveries and pledges

first published 2026-04-23T22:30:49Z

On April 18, 2026 an attacker drained unbacked rsETH from KelpDAO, swapped the tokens for WETH and stablecoins on Aave and triggered rapid contagion. CryptoQuant estimates Aave faces $124M–$230M in potential bad debt tied to depegged rsETH; Aave TVL fell 33% within 72 hours. Aave V3 borrow rates for USDT/USDC spiked from 3.4% to 14% and ETH borrowing briefly hit 8% (later ~5%). CryptoQuant found Aave’s aETHrsETH contract holds ~83% of circulating rsETH. USDe supply contracted by $800M (~14%) over three days, signaling broad DeFi liquidity stress.

AI Analysis

Facts: attacker drained unbacked rsETH and swapped on Aave; CryptoQuant estimates $124M–$230M potential bad debt; Aave TVL fell 33% in 72 hours; USDT/USDC borrow rates jumped 3.4%→14% and ETH borrowing reached 8% briefly; aETHrsETH contract holds ~83% of circulating rsETH; USDe supply contracted $800M (~14%). These concrete figures indicate immediate, negative liquidity and credit stress for DeFi and Aave.

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