{"id":13102,"date":"2026-08-26T07:00:00","date_gmt":"2026-08-26T05:00:00","guid":{"rendered":"https:\/\/kriptomat.hr\/users-withdrew-billions-from-aave-and-the-platform-continued-to-work-whats-going-on\/"},"modified":"2026-08-26T13:39:24","modified_gmt":"2026-08-26T11:39:24","slug":"users-withdrew-billions-from-aave-and-the-platform-continued-to-work-whats-going-on","status":"publish","type":"post","link":"https:\/\/kriptomat.hr\/en\/users-withdrew-billions-from-aave-and-the-platform-continued-to-work-whats-going-on\/","title":{"rendered":"Users withdrew billions from Aave, and the platform continued to work; what&#8217;s going on?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"13102\" class=\"elementor elementor-13102 elementor-13093\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-deb2c98 e-flex e-con-boxed e-con e-parent\" data-id=\"deb2c98\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3795b01 elementor-widget elementor-widget-heading\" data-id=\"3795b01\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Why Aave Continued to Work Despite Billions of Dollars Withdrawal<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-193815e e-flex e-con-boxed e-con e-parent\" data-id=\"193815e\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e77cbf3 elementor-widget elementor-widget-text-editor\" data-id=\"e77cbf3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400\">In April 2026, users withdrew $8.45 billion from Aave, the largest DeFi cryptocurrency lending platform, in just two days. The total value of assets locked (TVL) in the DeFi sector decreased by $13.21 billion over the same period. Despite this, Aave did not stop working for a single moment.<\/span><\/p><p><span style=\"font-weight: 400\">The reason was not the attack on Aave itself, but the hacking of another platform whose token was used by some users as collateral on Aave. The event shows the difference between a direct attack on a protocol and the risk that can arise from the assets that the protocol accepts as collateral.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d856428 e-flex e-con-boxed e-con e-parent\" data-id=\"d856428\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9eaf49b elementor-widget elementor-widget-image\" data-id=\"9eaf49b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/s3-images.ctmedia.io\/media\/article-covers\/hi-what-is-ethereum-credit-1.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-82e3aa5 e-flex e-con-boxed e-con e-parent\" data-id=\"82e3aa5\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-042f107 elementor-widget elementor-widget-text-editor\" data-id=\"042f107\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Source: <a href=\"https:\/\/cointelegraph.com\/\">cointelegraph<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-584cfc2 e-flex e-con-boxed e-con e-parent\" data-id=\"584cfc2\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-955b407 elementor-widget elementor-widget-heading\" data-id=\"955b407\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">What exactly happened?\n<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-5c0f094 e-flex e-con-boxed e-con e-parent\" data-id=\"5c0f094\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-06c07a9 elementor-widget elementor-widget-text-editor\" data-id=\"06c07a9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400\">On April 18, 2026, an attacker exploited a vulnerability in the bridge, or bridge, by which the Kelp DAO connects its rsETH token to other networks. rsETH is a so-called liquid restaking token that represents a position associated with ETH involved in restaking mechanisms. Through this vulnerability, the attacker extracted 116,500 rsETH tokens, worth about $292 million, without collateral on the original chain.<\/span><\/p><p><span style=\"font-weight: 400\">Instead of selling the stolen tokens immediately, the attacker deposited them on Aave V3 as collateral and borrowed about $190 million in wrapped ether. Some of the stolen funds were later bridged and exchanged for bitcoin via Thorchain, making it difficult to recover them.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-0d26305 e-flex e-con-boxed e-con e-parent\" data-id=\"0d26305\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d4cc714 elementor-widget elementor-widget-image\" data-id=\"d4cc714\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/s3-images.ctmedia.io\/media\/article-covers\/hi-expert-take-on-aave-hearing.jpg\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-a4b4501 e-flex e-con-boxed e-con e-parent\" data-id=\"a4b4501\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7169d77 elementor-widget elementor-widget-text-editor\" data-id=\"7169d77\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Source: <a href=\"https:\/\/cointelegraph.com\/\">cointelegraph<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-e1ce4aa e-flex e-con-boxed e-con e-parent\" data-id=\"e1ce4aa\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-32fccc9 elementor-widget elementor-widget-heading\" data-id=\"32fccc9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Aave was not directly hacked, but he was exposed to the consequences of the incident<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-22dea36 e-flex e-con-boxed e-con e-parent\" data-id=\"22dea36\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-de65de3 elementor-widget elementor-widget-text-editor\" data-id=\"de65de3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400\">Aave&#8217;s smart contracts were not compromised. The problem was that Aave accepted rsETH as collateral, and that token suddenly lost its actual coverage. Positions related to rsETH have created a risk of shortfall, or so-called bad debt, depending on the further development of the value and coverage of this token.<\/span><\/p><p><span style=\"font-weight: 400\">Aave&#8217;s TVL, or the total value of locked assets, fell from $26.4 billion on April 18 to $17.95 billion just two days later. The AAVE token fell 16 to 20 percent, and one OTC investor withdrew over $490 million in wstETH and cbBTC in just a few hours. Peter Chung, head of research at Presto Research, pointed out that such events show how interconnected DeFi protocols are, so market concerns can spread to platforms that are not directly affected by the attack.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-86b2b3f e-flex e-con-boxed e-con e-parent\" data-id=\"86b2b3f\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8c98c5d elementor-widget elementor-widget-image\" data-id=\"8c98c5d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/s3-images.ctmedia.io\/media\/article-covers\/aave-survived-845b-in-withdrawals-but-the-risk-debate-is-not-over.jpg\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-ffd36bd e-flex e-con-boxed e-con e-parent\" data-id=\"ffd36bd\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8607116 elementor-widget elementor-widget-text-editor\" data-id=\"8607116\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Source: <a href=\"https:\/\/cointelegraph.com\/\">cointelegraph<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-6fd6e86 e-flex e-con-boxed e-con e-parent\" data-id=\"6fd6e86\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-130bcac elementor-widget elementor-widget-heading\" data-id=\"130bcac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">DeFi sector participants engage in coverage renewal\n<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4e7c9f0 e-flex e-con-boxed e-con e-parent\" data-id=\"4e7c9f0\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9b7a77d elementor-widget elementor-widget-text-editor\" data-id=\"9b7a77d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400\">A few days later, the DeFi United initiative was launched, in which Lido and EtherFi offered thousands of ETH to renew the coverage of rsETH tokens, and Aave founder Stani Kulechov personally deposited 5,000 ETH. Arbitrum froze $71 million in ether that, according to available information, was linked to the attacker, although a legal dispute later arose over this freeze.<\/span><\/p><p><span style=\"font-weight: 400\">By May 7, Aave had completed the liquidation of the attacker&#8217;s last positions on Ethereum and Arbitrum, without even having to activate the Umbrella reserve. The renewal of full coverage of the rsETH token was still about ten percent delayed at that point, with the expected contributions of Circle, Ethena and other partners.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d324397 e-flex e-con-boxed e-con e-parent\" data-id=\"d324397\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4f4c1ab elementor-widget elementor-widget-image\" data-id=\"4f4c1ab\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/s3-images.ctmedia.io\/media\/article-covers\/presentation-woman-man-charts-up-aave-1.jpg\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-64cfba2 e-flex e-con-boxed e-con e-parent\" data-id=\"64cfba2\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-712ce54 elementor-widget elementor-widget-text-editor\" data-id=\"712ce54\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Source: <a href=\"https:\/\/cointelegraph.com\/\">cointelegraph<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-18e15de e-flex e-con-boxed e-con e-parent\" data-id=\"18e15de\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-07560f1 elementor-widget elementor-widget-heading\" data-id=\"07560f1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Where is Aave today?\n<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-025fbf2 e-flex e-con-boxed e-con e-parent\" data-id=\"025fbf2\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-72025c7 elementor-widget elementor-widget-text-editor\" data-id=\"72025c7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400\">Aave&#8217;s TVL returned above $15 billion as early as early May according to data available in August 2026, with growth of roughly 5 percent in the last month. The level is still far from the peak of $30.25 billion in November 2025, but part of that decline also comes from general market conditions, not just this attack.<\/span><\/p><p><span style=\"font-weight: 400\">The Kelp DAO, meanwhile, announced that it was moving rsETH from the LayerZero bridge to Chainlink&#8217;s CCIP protocol, following a dispute over who was responsible for the vulnerable configuration of the bridge. The whole case shows that the risks associated with DeFi protocols stem not only from the security of their own code, but also from the characteristics, infrastructure, and risks of the assets they accept as collateral.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In April 2026, users withdrew billions of dollars from Aave following an attack on the Kelp DAO and the loss of rsETH token coverage. Although Aave was not directly hacked, the stolen tokens were used as collateral, creating significant bad debt. In the blog, we bring an overview of the attack, Aave&#8217;s reaction, the attempt to cover the losses and the state of the platform a few months later.<\/p>\n","protected":false},"author":3,"featured_media":13104,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[49,48],"tags":[],"class_list":["post-13102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-dive-deeper"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Users withdrew billions from Aave, and the platform continued to work; what&#039;s going on? - Kriptomat<\/title>\n<meta name=\"description\" content=\"Aave suffered a major blow in April 2026 after the Kelp DAO was hacked. Find out how the bad debt came about and why Aave didn&#039;t collapse after all.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kriptomat.hr\/en\/users-withdrew-billions-from-aave-and-the-platform-continued-to-work-whats-going-on\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Users withdrew billions from Aave, and the platform continued to work; what&#039;s going on? - Kriptomat\" \/>\n<meta property=\"og:description\" content=\"Aave suffered a major blow in April 2026 after the Kelp DAO was hacked. 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