Aave sees $6 billion deposit drop as Kelp hack exposes structural risk for DeFi lender

Aave sees $6 billion deposit drop as Kelp hack exposes structural risk for DeFi lender

Search/NewsVideoPricesResearchConsensus 2026Data & IndicesSponsoredSearch/enTechShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailAave sees $6 billion deposit drop as Kelp hack exposes structural risk for DeFi lenderThe AAVE token fell 16% and deposits fled the protocol after attackers used drained rsETH as collateral to borrow wrapped ether, leaving Aave to quantify how much bad debt it is now carrying.By Shaurya MalwaUpdated Apr 19, 2026, 3:47 p.m. Published Apr 19, 2026, 2:56 p.m. Make preferred on What to know: Aave’s total value locked plunged by about $6.6 billion, and its token fell 16% after attackers used $292 million in stolen rsETH from Kelp’s bridge as collateral on Aave V3.The exploit, which did not compromise Aave’s own contracts, left roughly $196 million in Aave-specific bad debt concentrated in the dominant rsETH–wrapped ether pair on Ethereum.Aave’s

Source: https://www.coindesk.com/tech/2026/04/19/aave-records-usd6-billion-tvl-drop-as-kelp-hack-exposes-structural-risk-at-defi-lender