Apr 19
Aave Hit by $5.4B ETH Outflows After rsETH Exploit Sparks Whale Panic
Aave saw $5.4B in ETH outflows after an rsETH exploit report, while AAVE fell 18% and ETH utilization reached 100%.
➤ Aave experienced significant ETH outflows totaling $5.4 billion following a reported exploit involving rsETH and Kelp DAO, leading to bad debt. ➤ The exploit triggered a massive withdrawal of funds by large holders, including Justin Sun, and pushed Aave's ETH utilization rate to 100%. ➤ Consequently, the AAVE governance token saw an 18% price drop as whales sold off their holdings amidst concerns over protocol liquidity and security.