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Babylon Foundation #Aave : $3M USDT
Context: What Went Down Earlier?
On April 18, 2026, an attacker exploited the KelpDAO–LayerZero bridge and minted 116,500 fake rsETH (without backing) worth ~$292 million. This token was immediately deposited into Aave as collateral, then used to borrow ~$190 million in ETH and other assets on Ethereum and Arbitrum — leaving Aave with worthless collateral.
In just 3.5 days, Aave lost $15.1 billion in deposits - dropping from $48.5 billion to $30.7 billion, wiping out about a third of the platform's capital almost overnight.
Who is #BabylonProtocol & Why Are They Involved?
Babylon Foundation isn’t just some random name here. There’s a deep strategic connection with Aave:
Babylon partnered with Aave Labs in December 2025 aiming to introduce Bitcoin-backed lending on Aave V4 without wrappers or custodians. Target launch: April 2026 — right at the time of the rsETH exploit.
The company plans to integrate its technology with Aave in Q2 2026 and hasn't generated revenue yet — but hopes to start right after the launch alongside $AAVE .
This means: #Babylon has a significant skin in the game. If Aave collapses due to the rsETH crisis, years of research collaboration and hundreds of millions in funding could be dragged down with it.
#CanTheDeFiIndustryRecoverQuicklyFromAaveExploit?
#AaveAnnouncesDeFiUnitedReliefFund
$AAVE
{future}(AAVEUSDT)
Context: What Went Down Earlier?
On April 18, 2026, an attacker exploited the KelpDAO–LayerZero bridge and minted 116,500 fake rsETH (without backing) worth ~$292 million. This token was immediately deposited into Aave as collateral, then used to borrow ~$190 million in ETH and other assets on Ethereum and Arbitrum — leaving Aave with worthless collateral.
In just 3.5 days, Aave lost $15.1 billion in deposits - dropping from $48.5 billion to $30.7 billion, wiping out about a third of the platform's capital almost overnight.
Who is #BabylonProtocol & Why Are They Involved?
Babylon Foundation isn’t just some random name here. There’s a deep strategic connection with Aave:
Babylon partnered with Aave Labs in December 2025 aiming to introduce Bitcoin-backed lending on Aave V4 without wrappers or custodians. Target launch: April 2026 — right at the time of the rsETH exploit.
The company plans to integrate its technology with Aave in Q2 2026 and hasn't generated revenue yet — but hopes to start right after the launch alongside $AAVE .
This means: #Babylon has a significant skin in the game. If Aave collapses due to the rsETH crisis, years of research collaboration and hundreds of millions in funding could be dragged down with it.
#CanTheDeFiIndustryRecoverQuicklyFromAaveExploit?
#AaveAnnouncesDeFiUnitedReliefFund
$AAVE
{future}(AAVEUSDT)