Aave liquidates Kelp DAO hacker's rsETH positions on Ethereum, Arbitrum
Galaxy Digital’s Thaddeus Pinakiewicz noted that Aave is now only 10% short of recovering from the bad debt that hit its lending protocol after the Kelp DAO hack....
Key takeaways
- 1Aave liquidated the Kelp DAO hacker's rsETH positions on Ethereum and Arbitrum, recovering $30.2 million in collateral.
- 2DeFi United is now only 10% short of the ETH needed to fully restore rsETH backing after the $293 million April 18 exploit.
- 3Aave's total value locked stabilized above $15 billion on May 7 after dropping $12 billion following the hack.
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Why it matters
This recovery progress restores confidence in Aave's protocol stability and DeFi lending security for Indian investors exposed to major platforms. The outcome sets precedent for how decentralized platforms handle exploits, affecting retail participation in DeFi services.
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