Aave Still Reeling from Kelp Hack Six Months Later

The Kelp hack in April left Aave reeling, with $292 million drained from the liquid restaking protocol without breaking any lending code.

Aave froze its rsETH markets within an hour and faced bad debt of up to $230 million. The lender's own code never failed; instead, it was the collateral behind its loans that proved vulnerable.

The incident highlighted the importance of verifying the integrity of cross-chain bridges and the tokens they handle. Aave held $26.1 billion in deposits before the attack but now stands at $18.1 billion, a 31% drop.