A $300 million borrowing spike on Aave signals liquidity crunch after exploit
CoinDesk
Aave users are borrowing against their own trapped stablecoin deposits following a KelpDAO exploit that drained protocol liquidity.Summary
Following a major exploit at KelpDAO, Aave experienced a significant liquidity crisis that led users to borrow against their own locked stablecoin deposits. After the exploit drained billions in assets from the protocol, utilization rates hit 100%, preventing standard withdrawals. Consequently, depositors are forced to take out loans at a loss just to regain access to their capital, signaling a severe secondary liquidity crunch.
(Source：CoinDesk)