🔥What happened with the Aave protocol and its token?
Last weekend there was again an attack on sector
#defi of
#Criptomonedas , which created a domino effect among several protocols, one of them is the most important lending protocol in the sector
#AAVE , which was indirectly affected and
it all started in the Kelpdao protocol.
According to blockchain data, an attacker stole 116,500 rsETH ($ 292 million dollars) from the Kelpdao cross-chain bridge on Saturday. After this incident, Kelp dao activated
the multisig emergency pause mechanism.
Here comes the part that involves the Aave lending protocol. In a quick response and wanting to make the stolen money liquid, the attackers decided to use the stolen money as collateral to request loans up to
#WETH .
As a result, the Aave lending protocol generated uncollectible debts (bad debts) of more than $ 200 million dollars and froze all rsETH markets. This caused uncertainty among users and they started withdrawing money from the aave protocol, thinking that this could get worse.
The AAVE token fell more than 20% and now it is unclear who should bear this entire loss.
Have you ever used the Aave lending protocol?
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$AAVE