Bearish sentiment around $AAVE after the #KelpDAO rsETH exploit.
Around $290M in rsETH was reportedly drained, then used on Aave as collateral to borrow WETH, creating potential bad debt inside #Aave pools.
Important Aave itself was not #hacked but it is now exposed to fallout from worthless collateral.
Short term outlook remains bearish until
Exact bad debt is confirmed
Aave announces recovery measures
Market confidence returns
AAVE
99.77
+4.60%
For investors. waiting may be safer than rushing to buy. If you believe in Aave long term, scaling in slowly could be smarter than going all in.
Fear is high, but if Aave handles this well, recovery is still possible.