The total amount locked in one of the most reliable crypto lending platforms is slowly decreasing after hackers successfully attacked the third party protocol.
According to LookonChain, Aave is testimony Its TVL dropped by $6.28 billion within 48 hours after KelpDAO’s LayerZero-powered cross-chain bridge was compromised and nearly $292 million of its rsETH token was created out of thin air.
“Because of a KelpDAO user borrowing 82,600 ETH ($195M) from Aave using rsETH as collateral, bad debt has appeared on Aave.
Many whales have withdrawn money from Aavecausing its TVL to drop from $26.396B to $20.114B, a decrease of $6.28B.
Major withdrawals include:
• MEXC withdrew $431 million
• Whale 0x7CD0 (probably associated with Nonco) generated $405.7 million
• Abraxas Capital withdrew $392 million
Aave itself has not been hacked, but the system is now heavily indebted to the non-profit rsETH. “
Aave suspended the rsETH markets on V3 and V4 to prevent borrowing/savings, and the team says it is now investigating ways to resolve any issues.
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