Aave Still Nursing Wounds from KelpDAO Hack

Aave's TVL has yet to recover from the KelpDAO hack in April. The value of assets in its smart contracts is down 43% since the attack, and 67% below its 52-week high.

The hack occurred on April 18, when North Korean hackers stole $26.4 billion worth of crypto assets from KelpDAO. Through Aave's acceptance of KelpDAO tokens as collateral for loans, the protocol suffered a nine-figure loss.

Aave forcibly liquidated the attacker's positions and industry allies rebuilt the missing collateral by late May, but its dollar value of liquidity pools never recovered. Today, Aave sits about two-thirds below its October peak, with $14.9 billion in TVL, compared to $45.9 billion at its peak.