NewsBTC
Apr 23, 2026 upd. 7 Jun
6 1

Aave TVL plunges $15B; borrowing rates jump to 14% across DeFi

2 min

Kelp DAO was exploited. The attacker minted unbacked rsETH, posted it on Aave, and borrowed real assets. A fast liquidity shock followed across DeFi.

They bypassed the ETH deposit check. Unbacked rsETH was created, then used as collateral to borrow real ETH, USDT, and USDC. Up to $230 million in potential bad debt emerged inside Aave. The exploit ran for hours. The aftermath continues.

  • Aave TVL fell from ~$45B to ~$30B in three days, a 33% drop according to XWIN Research Japan.
  • Borrow rates for USDT and USDC jumped from ~3.4% to ~14% as liquidity tightened source.
  • Holders sent AAVE to exchanges at higher rates, adding to visible sell pressure source.
  • USDe supply contracted 14% over the same window source.

This reads like a trust run, not a price dip. XWIN says recovery needs stronger security, better collateral mixes, and more resilient liquidity design — and, above all, user trust that changes are real source.

AAVE price action stays bearish. AAVE trades near $90–$95 after a failed bounce. The push toward $110–$115 was rejected at the falling 50-day MA. The 50- and 100-day MAs slope down. Lower highs and lows persist since late 2025.

Selling volume rose on the drop back to $90. Buyers defend that area, but follow-through is weak. A break below $90 opens room toward ~$80. Bulls need a decisive reclaim of $110 to challenge the trend. For now, rallies look corrective.