After KelpDAO’s rsETH LayerZero bridge was attacked, Aave saw about $8.45 billion in withdrawals. Its core functions did not fail, but the incident renewed debate over concentration, liquidity and contagion risks in DeFi lending.

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.