#AAVE This time can be considered an experience of a 'DeFi-level stress test'.
The cause was the exploitation of a vulnerability in #kelp #DAO , which minted nearly $300 million in unsecured assets, and it was also used as collateral to borrow real ETH in Aave, directly pushing the system's liquidity to the limit, even triggering a large-scale withdrawal panic at one point.
However, after the most tense phase, the Aave team quickly froze the relevant markets and limited the risk spread, and the overall system did not collapse. The panic also began to subside, with prices stabilizing slightly around $92.
But the problem has not been completely resolved; the market is now reassessing the potential scale of bad debts, while TVL has also significantly declined, indicating that funds are still being withdrawn cautiously.
From the trend, AAVE is currently oscillating in a critical range, with $95 above as a resistance level, and $80 below as support. Only if it can firmly hold above the resistance level can we talk about a real recovery trend.
Overall, this wave is more like a 'repair period after risk release'; the panic has passed, but confidence is still being rebuilt.
The cause was the exploitation of a vulnerability in #kelp #DAO , which minted nearly $300 million in unsecured assets, and it was also used as collateral to borrow real ETH in Aave, directly pushing the system's liquidity to the limit, even triggering a large-scale withdrawal panic at one point.
However, after the most tense phase, the Aave team quickly froze the relevant markets and limited the risk spread, and the overall system did not collapse. The panic also began to subside, with prices stabilizing slightly around $92.
But the problem has not been completely resolved; the market is now reassessing the potential scale of bad debts, while TVL has also significantly declined, indicating that funds are still being withdrawn cautiously.
From the trend, AAVE is currently oscillating in a critical range, with $95 above as a resistance level, and $80 below as support. Only if it can firmly hold above the resistance level can we talk about a real recovery trend.
Overall, this wave is more like a 'repair period after risk release'; the panic has passed, but confidence is still being rebuilt.