The KelpDAO-related cryptocurrency market security breach crisis has led to a significant liquidity shock in DeFi protocols. According to recent data on a large scale $ETH There has been an outflow through Aave, while investor confidence is visibly weakening.
According to information shared by on-chain analytics platform Lookonchain, the KelpDAO exploit resulted in a “bad debt” to Aave after the attacker backed out $ETH out of the system using rsETH collateral. This development led to panic selling, especially among large investors.
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According to the data, this amounts to a total of more than 5.4 billion dollars $ETH was taken off the platform. During this period, it was reported that Justin Sun, a leading figure in the cryptocurrency market, also made approximately 65,584 $ETH (approximately $154 million).
After this intense outflow, Aave’s $ETH usage reached 100%. This indicates that the available liquidity of the protocol has been largely depleted and new borrowing capacity may be severely limited.
*This is not investment advice.