aave’s risk advisor tokenlogic was getting paid by kelpdao to manage its treasury while also pushing 86% LTV for rsETH on aave. the conflict was disclosed; governance still passed it on 5–10% turnout. spark froze rsETH three months before the hack and grew 25% in two days after. roughly $230m in bad debt was created by a system that “followed the rules.” the governance token is supposed to be the circuit breaker, but 90% of holders didn’t vote, one risk vendor had no adversary, and the top 100 addresses controlling 80%+ of AAVE sat still. that’s not a bug; it’s exactly how this design behaves under stress. // zero illusion