Aave loses $15.1B in deposits (one-third of TVL) within 3.5 days following an rsETH exploit, though Spark Protocol TVL surges to $3.2B.
Security & Exploits ·
Aave sustained deposit outflows totaling $15.1 billion within 3.5 days following the rsETH exploit, reducing total deposits from $48.5 billion to $30.7 billion—a loss representing approximately one-third of funds. The outflow prompted Aave to maintain a 13.4% APY deposit rate for stablecoins over a full day. Morpho also lost deposits during this period, declining $1.5 billion from $11.7 billion to $10.2 billion.
SparkLend captured a significant portion of the displaced capital, with its TVL rising $1.3 billion from $1.9 billion to $3.2 billion in the same window. According to reports from market observers, the funds absorbed by Spark came from certain whales and institutions withdrawing from Aave, including participants such as Sun Ge and a whale that had accumulated $500 million in February.
What remains unclear is whether the outflows have stabilized or may continue, the full extent of which protocols benefited beyond Spark, and whether the elevated stablecoin APY successfully retained deposits in subsequent days.