⚠️ALERT: AVEE
is now down -19% today after a $292M Kelp DAO rsETH exploit triggered a full-blown liquidity crisis.
Aave's ETH pool just hit 100% utilization. That means one thing: there's almost no ETH left to withdraw.
Here's what happened:
Attacker drained 116,500 rsETH ($292M) from Kelp DAO's LayerZero bridge
He then deposited the stolen rsETH as collateral on Aave V3 to borrow ~$236M in WETH.
Because the rsETH is now unbacked, those positions are unliquidatable.
Aave is now stuck with ~$280M in bad debt it cannot recover.
Panic withdrawals have followed: $5.4 BILLION in ETH outflows, with Justin Sun pulling 65,584 ETH ($154M) alone.
ETH utilization has maxed out at 100%, which means there's almost no ETH left to withdraw.
This is the FIRST real-world test of Aave's Umbrella safety module & the BIGGEST DeFi exploit of 2026.
This is a developing story.
