Following the KelpDAO-related rsETH crisis, the “DeFi United” recovery process launched in the DeFi ecosystem continues to see increasing institutional support. Recently, Circle Ventures, the investment arm of Circle, the company behind the USDC stablecoin, announced the acquisition of AAVE.
In a statement, Circle noted that strong DeFi infrastructures don’t just happen spontaneously, arguing that Aave is one of the key projects shaping the future of on-chain finance. The company stated that they not only support the Aave protocol, but also the broader ecosystem and community that has formed around it.
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This development is seen as part of the broader recovery efforts that have taken shape around Aave in recent days. As you may recall, following the security breach on KelpDAO’s rsETH bridge, Aave experienced billions of dollars in liquidity outflows, with some pools reaching 100% occupancy and creating significant “non-performing loan” exposures. Notable developments during this period included Aave DAO’s proposal to contribute 25,000 $ETHthe USDT support from the Solana Foundation and the recovery of $70 million $ETH by the Arbitrum Security Council.
*This is not investment advice.