Kelp DAO exploit leaves Aave with bad debt; $5.4B whale exodus triggered, including Justin Sun withdrawing $154M, pushing ETH utilization to 100%.
Security & Exploits ·
A Kelp DAO exploit has triggered significant stress on Aave, with the attacker depositing rsETH to drain ETH and leaving the protocol with bad debt. The incident has prompted a major withdrawal wave, with over $5.4 billion in assets fleeing Aave as users rush to secure their funds.
Among the large withdrawals, Justin Sun removed 65,584 ETH valued at approximately $154 million from the platform. This outflow, combined with other whale movements, has pushed Aave's ETH utilization rate to its maximum of 100%, indicating all available ETH reserves are now deployed.
The mechanics of how the Kelp DAO exploit led to bad debt on Aave remain unclear from available reports, as does the full scope of the damage and whether additional protocol safeguards have been triggered or modified in response.