Aave V3 sheds $4B in liquidity in 29 hours after Kelp DAO rsETH bridge exploit

Aave V3 saw liquidity drop by about $4 billion within 29 hours after a vulnerability was exploited in Kelp DAO's rsETH bridge, according to Glassnode. WETH utilization hit 100% roughly 1.4 hours after the incident and peaked around seven hours before the protocol guardian froze the contract. While the Aave smart contract continued to function normally, the bridge ultimately failed.