🚨The DeFi market just lost $13 Billion in 48 hours, and Aave is fighting for its life.
It wasn't a hack on $AAVE , but a collateral poisoning. Hackers stole $293M from Kelp DAO, dumped the worthless tokens into Aave, and walked away with $200M in real $ETH . Now, Aave is left with a massive hole in its books and a 100% utilization rate meaning many users can't withdraw their funds.
The Reality Check: Aave's insurance only covers 30% of the loss. The rest? It might come out of the pockets of ordinary depositors. We are witnessing the first real test of DeFi socialized losses.
The Question: Is this the end of Liquid Restaking dominance, or just a brutal lesson in cross-chain risk?
Are you keeping your funds in Aave, or was the $13B exit the smart move?