The market repriced DeFi in just 48 hours
CoinDesk
A major exploit on Aave forced the DeFi market to rapidly correct its long-standing underpricing of credit risk.Summary
Following an exploit involving Kelp DAO and Aave, the DeFi market underwent a rapid and necessary repricing of credit risk. Previously, Aave offered yields that failed to account for the inherent dangers of unregulated protocols. The incident revealed that DeFi lacks the bankruptcy protections and recovery mechanisms found in traditional finance, forcing participants to scramble for liquidity. This event serves as a critical warning to institutional allocators that DeFi yields must reflect the reality of onchain risk, effectively ending the period of market mispricing.
(Source：CoinDesk)