Aave sees $5.4B in withdrawals after exploit; lending demand rotates to Spark

On-chain analyst Ember (@EmberCN) reported that a hacker borrowed a large amount of ETH on Aave after illicitly minting rsETH and using it as collateral. In response, users have withdrawn more than $5.4 billion from Aave as a risk precaution. Sun Guangchuan alone pulled 65,584 ETH, worth about $154 million. Lending demand on-chain has since shifted toward protocols such as Spark, where the ETH deposit rate briefly spiked to 130% and is now around 18%.