Aave faced a $292 million exploit via KelpDAO’s LayerZero bridge in April 2026, triggering an $8.45 billion deposit run within 48 hours and exposing vulnerabilities in major DeFi platforms. Aave averted collapse by urgently raising $300 million, including 25,000 ETH from the Aave DAO and 5,000 ETH from founder Stani Kulechov. Although the founder described the event as proof of the protocol’s resilience, Aave plans to mitigate future risks by introducing a modular design in its V4 upgrade to prevent bridge failures from triggering cascading effects.
Aave Faces $8.45 Billion Deposit Withdrawal After $292M KelpDAO Bridge Hack
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Summary
In April 2026, a crypto hack on KelpDAO’s LayerZero bridge triggered an $8.45 billion deposit run on Aave within 48 hours. The $292 million exploit revealed critical DeFi vulnerabilities, compelling Aave to raise $300 million in emergency funds. The Aave DAO contributed 25,000 ETH, with founder Stani Kulechov adding an additional 5,000 ETH. Aave plans a V4 upgrade featuring a modular design to mitigate bridge-related risks. The incident underscores persistent concerns about exchange hack risks in the DeFi ecosystem.
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