Aave Deposits Drop $15 Billion After Kelp DAO Attack

Data from Aavescan shows total deposits fell from $45.8 billion on Saturday to $30.8 billion by Wednesday after an attack involving Kelp DAO and rsETH.

AAVE
RSETH

Summary

Aave saw a sharp decline in deposits after an attack involving Kelp DAO. According to Aavescan, total deposits on the decentralized lending protocol fell from $45.8 billion on Saturday to $30.8 billion by Wednesday, a drop of about $15 billion. The source says the incident involved roughly 116,500 rsETH, valued at about $293 million. The move highlights how security incidents tied to major crypto assets or protocols can quickly affect user confidence and liquidity on DeFi (blockchain-based financial services) platforms such as Aave.

Terms & Concepts
  • Aave: A decentralized lending protocol that lets users supply crypto assets to earn yield or borrow against collateral without a traditional intermediary.
  • Kelp DAO: A DAO (community-run blockchain organization) linked to crypto staking products, referenced here in connection with the reported attack.
  • rsETH: A restaking token tied to Ethereum staking, designed to represent deposited or restaked assets within DeFi ecosystems.