@WuBlockchain Aave Sees $5.4B ETH Outflows as rsETH Exploit Raises Concerns According to Lookonchain, the Kelp DAO exploit has left Aave saddled with bad debt after the attacker deposited rsETH to drain ETH. This has sparked a massive whale exodus, with over $5.4 billion fleeing the protocol in a panic. Justin Sun alone yanked 65,584 ETH (~$154M) from the platform. Driven by this mass flight, Aave's ETH utilization rate has now maxed out at 100%. x.com Aave sees $5.4B ETH outflows after Kelp DAO rsETH exploit by mishaderidder.eth12653 🥝 • 2mo • | |
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  It is pretty scary admittedly. I have a lot of ETH on Aave because I had to pay taxes which turned out more than I expected, so I collateralized a significant portion of my ETH savings on Aave and borrowed fiat. At this point, I think, I can still get out by repaying my debt and trading my aWETH against WETH on Uniwap. Or I think once I repay my debt, I can even just cash out the ETH altogether (haven't tried). But frankly I don't want a taxable event for that swap and I also don't really have the fiat laying around to close the position without pain. It's really annoying because I'm actually very conservative with my ETH. I hold no staking tokens and I'm frankly surprised my plain ETH can be exchanged for an ETH that may or may not be backed (rstETH). That feels like the wrong assumptions in the Aave product/protocol design. Because frankly you can't just mint more unbacked ETH in any possible way. | |
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