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Aave Survives $8.45 Billion Withdrawal Pressure, but Hidden Risks in DeFi Come Under Scrutiny Again
Svmuu News: The DeFi lending protocol Aave has successfully remained operational following a capital outflow of approximately $8.45 billion, but the incident has also reignited market discussions about its risk profile and the fragility of the DeFi system. This stress event stemmed from a vulnerability attack on the KelpDAO rsETH cross-chain bridge in April 2026, in which approximately $292 million in assets were stolen, sparking market concerns about the security of rsETH collateral. Since this asset is widely used as collateral on Aave, panic spread rapidly, leading to a concentrated wave of user withdrawals. During the outflow, liquidity in some lending markets was rapidly depleted, with utilization rates briefly approaching 100%. Aave managed to control the situation by adjusting risk parameters and activating emergency mechanisms, though localized withdrawal restrictions still occurred. Nevertheless, Aave’s core smart contracts were not compromised. Protocol founder Stani Kulechov stated that the incident validated the system’s stability and resilience under extreme stress. However, analysts pointed out that this incident exposed structural risks in DeFi: high inter-protocol asset coupling, reliance on external bridge assets for collateral, and the potential for liquidity to dry up rapidly under extreme conditions. Industry observers believe that while DeFi’s “composability” enhances efficiency, it also accelerates risk transmission, making it possible for an incident involving a single asset to trigger a systemic chain reaction. Although Aave successfully weathered this stress test, the outcome does not mean the risks have been eliminated. Overall, this incident is viewed as a real-world, extreme stress test for the DeFi lending system: while the system remains operational, its stability remains highly dependent on the quality of external assets and market liquidity conditions. (Cointelegraph)
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