Aave Faces $8.45 Billion Withdrawal Wave During rsETH Crisis as DeFi Risk Controls Come Under Debate
After KelpDAO’s LayerZero bridge was attacked in April 2026, around $292 million in rsETH was stolen and Aave saw roughly $8.45 billion in withdrawals. The protocol’s core functions continued operating, but the episode revived debate over liquidity risk, concentration risk and contagion across interconnected DeFi protocols.



