Key Takeaways:
The KelpDAO exploit on April 18, 2026, exposed Aave to an estimated $124M-$230M in bad debt within 72 hours. Aave’s total value locked fell 33%, shedding billions, with USDT and USDC borrow rates hitting 14%. USDe supply shed $800 million in three days, signaling continued DeFi liquidity stress across major protocols. KelpDAO rsETH Hack Triggers Multi-Billion-Dollar Liquidity Drain on AaveCryptoquant researchers found that Aave’s aETHrsETH contract holds approximately 83% of all rsETH circulating supply, making it the single most exposed protocol to the hack. The firm estimates Aave now carries between $124 million and $230 million in potential bad debt tied to depegged rsETH collateral.
USDe’s total supply fell from $5.8 billion to $5 billion in three days, a decline of $800 million or 14%. Cryptoquant called it one of the largest short-term redemption events in USDe’s history.
