Aave Loses Top DeFi Spot as $293M Kelp DAO Exploit Sparks Bad Debt Crisis

Over the weekend, the total value locked onto the decentralized lending protocol Aave fell by about $8 billion. This was due to the fact that the hackers responsible for the $293 million Kelp DAO attack borrowed funds on Aave, leaving the protocol with around $195 million in “bad debt” and prompting