The broader DeFi ecosystem is stepping in to stabilize Aave after a major exploit exposed systemic risk.
Following the Kelp DAO incident, where 116,500 rsETH was compromised, the fallout hit Aave hardest. The attacker minted rsETH from nothing, used it as collateral, and borrowed 99,600 WETH directly from Aave’s liquidity pools.
What followed was predictable but severe — confidence dropped fast. DeFi saw roughly $15B in total value exit, with Aave alone losing around $12B in TVL as users rushed to reduce exposure.
In response, Aave has taken the lead in launching a “DeFi United” effort, calling on major protocols to coordinate support and contain the damage.
Out of the 99,600 WETH deficit, Arbitrum has already frozen 30,700 ETH. That leaves an estimated shortfall of about 68,900 ETH (roughly $160M). So far, around 43,500 ETH in support has been pledged:
• Stani Kulechov: 5,000 ETH personally contributed
• Golem Foundation: 1,000 ETH from treasury
• EtherFi: 5,000 ETH proposed
• Lido Finance: 2,500 stETH proposed
• Mantle: 30,000 ETH loan facility proposed to backstop bad debt
That still leaves approximately 25,400 ETH (around $58M) uncovered.
Other players like Ethena, LayerZero, Ink Foundation, and Tydra have signaled support, though specific commitments have not yet been disclosed.
This is shaping into a rare moment of coordinated defense across DeFi — not just to protect Aave, but to prevent contagion from spreading further.
#defi #AAVE $TRADOOR $RIVER $RAVE