Morpho TVL hits $11.78B as Aave faces $200M bad debt after KelpDAO hack

Morpho’s total value locked climbed to $11.78 billion, positioning it as the second-largest DeFi lending protocol as users reassessed risk following KelpDAO’s hack. Aave was left with $200 million in bad debt while Morpho’s exposure was $1 million across two isolated markets, alongside Morpho metrics including $4 billion in active loans and $175 million in annualized fees.