Aave Hit by $5.4B ETH Withdrawals After rsETH Exploit Triggers Bad-Debt Fears
Aave has seen more than $5.4 billion in ETH leave the protocol as concerns mount over fallout from an rsETH-related exploit. Lookonchain said the Kelp DAO incident left Aave exposed to bad debt after an attacker deposited rsETH and used it to drain ETH.
The report has fueled a wave of large-holder withdrawals. Justin Sun reportedly pulled 65,584 ETH, worth about $154 million, from the platform. Amid the rush for exits, Aave's ETH utilization rate has climbed to 100%.