Aave (AAVE) — Onchain News & Whale Tracking

Addresses associated with Amber Group withdrew approximately $9.97 million in assets from Binance, involving five tokens including ENA, AAVE, ETH, and others.

According to monitoring by OnchainDataNerd, addresses linked to Amber Group (@ambergroup_io) withdrew approximately $9.97 million in assets from Binance 10 hours ago, involving five tokens: 38.89 million ENA (worth ~$3.58 million), 28,262 AAVE (~$2.52 million), 1,140 ETH (~$2.18 million), 2,017 BNB (~$1.2 million), and 59,202 LINK (~$490,000).

Aave: The delisting of low-adoption assets and networks should not be interpreted as a stance on any Layer 1 (L1) or Layer 2 (L2) blockchains.

Aave founder Stani Kulechov said that Aave’s recent delisting of low-adoption assets and networks should not be interpreted as a stance against any Layer 1 (L1) or Layer 2 (L2) blockchains. The move is aimed at reducing Aave’s operational, technical, and economic risk exposure, so that the protocol can focus on higher-impact priorities such as expanding existing high-value markets and entering the securities lending space. L2s remain critical to Ethereum’s user experience: for example, Aave App’s stable vaults use L2s as their accounting layer, which will help mainstream users access DeFi. Similarly, networks like Avalanche play an important role in bringing real-world assets (RWAs) on-chain through institutional business expansion, an area where Ethereum has historically been relatively weak.

Aave is phasing out low-utilization assets and certain on-chain deployments, involving nearly $100 million in supplied assets.

According to Aave founder Stani Kulechov, following a comprehensive review, Aave will phase out 50 low-utilization asset reserves across multiple deployment environments, and orderly terminate deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, involving an additional 25 asset reserves. Additionally, 21 expired Pendle Principal Token (PT) assets will also be phased out and replaced with newly expiring assets. The adjustment covers approximately $98.1 million in supplied assets and $15.6 million in debt. Stani stated that the move aims to reduce the protocol’s economic and technical risks in line with Aave’s new risk framework and technical asset listing framework, adding that Aave will continue to conduct risk assessments on assets across all deployment environments going forward.

Aave Founder: CLARITY Act Enters Final Critical Stage, DeFi to Reach Regulatory Milestone

Aave founder Stani Kulechov posted on X that there is a greater need than ever for all industry stakeholders to align and do everything possible to advance the smooth passage of the U.S. CLARITY Act. Stani noted that while the CLARITY Act is not perfect and many details still need to be finalized by regulators, it will be the first piece of legislation addressing decentralized finance (DeFi), providing a clear legal framework and regulatory certainty for institutions, fintech firms, and banks to engage in on-chain finance. Once enacted, the CLARITY Act is expected to drive the on-chain finance ecosystem in a way similar to how the earlier GENIUS Act spurred growth in the stablecoin sector, attracting more investment and institutional capital to on-chain spaces. Stani added that over the past year, particularly in recent weeks and days, the Aave team has been in close communication with relevant policymakers in Washington, D.C. He noted that the effort to advance the bill has entered its "final mile," a critical phase.

A crypto whale deposited $39.2 million worth of assets as collateral on Aave, and has not yet taken out any loans.

According to monitoring by Onchain Lens, a whale address deposited assets worth approximately $39.2 million into Aave over the past four hours and set them as collateral. The address’s current Aave position includes 18,000 ETH (valued at around $3.34 million) and 5.78 million USDC. To date, the address has not borrowed any funds using the collateral, with a lending balance of zero. On-chain data shows the whale address is 0xA92C80B3962F10e063Ad5463f996fe414F0E1F66.

Abraxas Capital withdrew 15,290 ETH from Aave and Binance, worth approximately $29.4 million.

According to monitoring by Onchain Lens, Abraxas Capital withdrew 13,500 ETH from Aave, valued at approximately $26 million. Additionally, the firm also withdrew 1,790 ETH from Binance, worth around $3.4 million.

Abraxas Capital withdrew 20,000 ETH from Aave, valued at approximately $38.47 million.

According to monitoring by Onchain Lens, Abraxas Capital has just withdrawn 20,000 ETH (approximately $38.47 million) from Aave.

Aave V4 has been deployed on the Avalanche network, marking the first multi-chain deployment leveraging the Hub & Spoke architecture.

Aave V4 has been deployed on the Avalanche network, marking the first multi-chain rollout of Aave V4’s Hub & Spoke architecture. The deployment comprises a core liquidity hub and three sub-markets: the main market supports lending and borrowing of assets including WAVAX, BTC.b, USDC, USDT, and WETH.e; the AVAX-focused market centers on AVAX liquid staking strategies, enabling users to deposit sAVAX at a 95% collateralization ratio to borrow WAVAX; the foreign exchange market facilitates collateralization and lending among three stablecoins: EURC, USDC, and USDT. The core liquidity hub adopts a shared liquidity pool design, with all sub-markets sharing the same pool to prevent liquidity fragmentation. Aave noted that since its initial deployment on Avalanche in 2021, cumulative inflows from its V2 and V3 markets have exceeded $15 billion, while the stablecoin utilization rate in its current V3 market stands at over 90%.

Aave Labs Launches Fixed-Income Tool Stable Vaults

Aave Labs has announced the launch of Stable Vaults, opening the product to third-party developers and enterprises. Stable Vaults convert on-chain variable lending yields into fixed yields, and automatically handle cross-chain liquidity management, asset rebalancing, and yield distribution, allowing enterprises to rapidly build stablecoin yield products. According to Aave Labs, the solution is already implemented in the Aave App, and is now available for integration by wallets, exchanges, neobanks, payment companies, and fintech enterprises, while also supporting connection to any ERC-4626 yield strategy.

Abraxas Capital Deposits 8,000 ETH to Aave

According to monitoring by Onchain Lens, Abraxas Capital has just deposited 8,000 ETH into Aave, valued at approximately $14.15 million.

Tokenized fund USTB saw its deposit volume into Aave rise by around 300% quarter-on-quarter in Q2.

According to data from Token Terminal, the amount of Invesco’s tokenized U.S. Treasury fund USTB deposited on Aave rose roughly 300% quarter-over-quarter. Managed by Invesco and issued based on Superstate’s FundOS transfer agent and tokenization infrastructure, USTB demonstrates the ongoing deepening integration between real-world assets (RWA) and DeFi protocols.

Deposits into Aave’s new Monad market surpassed $100 million within two days of its launch, while total deposits for Aave V4 hit a new all-time high, exceeding $250 million.

Decentralized lending protocol Aave’s V3 market on the Monad network has surpassed $100 million in total deposits roughly two days after launch. Aave deployed its V3 version on Monad on July 3, marking the first time lending functions and its GHO stablecoin have been introduced to the network. The launch initially supported 12 assets including USDT, USDC, GHO, WETH, and cbBTC. Deposits exceeded $75 million within the first 24 hours of going live. Per an Aave governance proposal, the Monad Foundation has committed to providing $15 million in incentives over the next 12 months, and will purchase and hold 10 million GHO for at least six months; Aave DAO will also contribute an additional 500,000 GHO to support stablecoin ecosystem development. Additionally, Aave founder Stani Kulechov noted that Aave V4’s deposit volume on the Ethereum mainnet hit a new all-time high of $250 million on July 5. He expressed expectations that V4’s deposits will grow further to $1 billion, with plans to continue expanding into crypto asset mortgage loans and securities-backed lending services.

Aave Founder: Expanding the market from crypto assets to all asset classes via securities lending business

Aave founder Stani has stated that the protocol is expanding its market from crypto assets to all asset classes via securities-collateralized lending. Brokers like Robinhood and Charles Schwab usually retain 50% to 85% of stock lending fees, returning only a small portion to their users. The global securities lending market is approximately $4.6 trillion in size, generating around $350 billion in annual revenue, most of which is captured by brokers. Tokenized stocks, through Aave V4, can return the full lending revenue directly to users, offering advantages including real-time transparency, dynamic pricing, no re-collateralization, and no intermediary fee deductions.

Aave’s founder has responded to rumors that Kraken is taking an equity stake in the protocol, stating that valuation reports are inaccurate, annual revenue stands at $134 million, and the team is designing a new buyback mechanism.

In response to market reports that Kraken is in talks to acquire a 15% stake in Aave, Aave co-founder Stani Kulechov issued a statement Thursday to clarify that the relevant reports are "inaccurate in their framing", and provided a systematic overview of Aave’s revenue attribution, equity structure, and future plans. Kulechov explicitly denied the possibility of selling AAVE tokens at a 30% discount, stressing that all revenue from the Aave protocol and GHO stablecoin belongs to AAVE token holders, applicable to all product lines including Aave App, Aave Pro, and Swaps. Neither protocol nor product revenue flows to Aave Labs, the DAO’s service provider. He explained that Aave Labs holds a certain amount of allocated AAVE tokens, and multiple market participants have discussed direct or indirect purchases to forge deeper long-term partnerships. On the data front, Kulechov disclosed Aave’s current annualized revenue stands at $134 million, all of which belongs to the Aave DAO. He also revealed the team is designing Aavenomics 3.0, which features a new automated, non-discretionary token buyback mechanism, with specific details to be released separately. Strategically, Kulechov emphasized Aave’s target market extends beyond the crypto space to the entire financial asset market, including real-world assets (RWA). He announced a quarterly call will be held in the coming weeks to share the latest updates on Aave’s roadmap.

Crypto exchange Kraken is in talks to acquire a 15% stake in DeFi protocol Aave, valuing the deal at $385 million, and plans to expand into DeFi asset management business.

According to people familiar with the matter, Payward, the parent company of crypto trading platform Kraken, is in talks with decentralized lending protocol Aave, proposing to exchange 35,000 Ether for 250,000 AAVE tokens plus a 15% ordinary stake in Aave Group. The deal carries an overall valuation of roughly $385 million, with a transaction value of around $71 million. The sources added that Kraken is also seeking co-financing for the transaction. This investment is positioned as the first in a series of deals for Payward’s asset management business, marking Kraken’s shift to a more active role in DeFi and other investment sectors. The sources noted that Payward has robust capital backing, and existing partners are interested in participating in such opportunities. Aave is currently the world’s largest decentralized lending protocol, but in April this year, it was embroiled in one of the most severe crises in DeFi history: hackers exploited a vulnerability in the KelpDAO cross-chain bridge to mint approximately $292 million in uncollateralized rsETH, which was then used as collateral to borrow real assets on Aave, leaving the protocol with bad debts of $190 million to $230 million. Though Aave’s own smart contracts were never compromised, the incident triggered the withdrawal of over $8 billion in deposits, underscoring the cascading risks of interconnectedness in the DeFi ecosystem. Kraken has been on an acquisition spree recently: earlier in April, it announced the acquisition of crypto derivatives exchange Bitnomial for up to $550 million, and is reportedly conducting a new round of financing at a $20 billion valuation, actively paving the way for a potential IPO.

Standard Chartered: AAVE could surge to $3,500 by the end of 2030, a roughly 50-fold increase from its current price.

Standard Chartered’s Head of Digital Assets Research Geoff Kendrick has initiated coverage on decentralized lending protocol Aave, projecting the AAVE token could surge to $3,500 by the end of 2030—roughly a 50x increase from its current level of around $70. Kendrick noted Aave has moved past market turmoil tied to the April network hack, with assets starting to flow back to the platform. The protocol appears to have recovered from the incident and remains on track to retain its dominance in on-chain lending markets. In April, KelpDAO’s rsETH bridge collapse roiled DeFi, as attackers used roughly $290 million in stolen tokens as collateral on Aave to borrow real assets, exposing the protocol to a potential maximum loss of $230 million and triggering depositor outflows. Kendrick likened Aave to an automated, blockchain-based bank with no staff or discretionary decision-making. He added that at its peak in October 2025, Aave held around $75 billion in deposits—a sum that would rank it among the top 30 largest banks in the U.S. if it were a traditional financial institution. Looking ahead, Kendrick projects the value of tokenized assets actively used in DeFi applications will grow 37x by the end of this decade. Since Aave’s revenue model is closely tied to lending activity and deposits, Standard Chartered expects the protocol’s growth to translate directly to gains for the AAVE token. The report also notes that Aave’s token buyback program could be restarted, acting as an additional catalyst. Aave’s Horizon initiative, which aims to support lending using tokenized real-world assets (RWAs) as collateral in permissioned environments, may help attract traditional financial institutions and accelerate adoption.

Aave Founder: Aave V4 Can Reforge On-Chain Securities Lending Market, Targeting Market Size of Trillions of Dollars

June 20: Aave founder Stani Kulechov revealed that Aave V4 has the potential to overhaul the on-chain securities financing market, labeling this space as one of Wall Street’s largest but most under-the-radar sectors. Securities-backed lending is already a multi-trillion-dollar industry, per Kulechov: the U.S. repo market boasts an average daily outstanding of around $12.6 trillion, margin lending hits $1.3 trillion, wealth management securities-backed lending exceeds $400 billion, and the securities lending market holds roughly $46 trillion in lendable assets—with projected revenue set to hit a record $15 billion by 2025. Aave V4 operates on a "Liquidity Hub + Modular Market" framework: base-layer liquidity is shared across the system, while top-layer markets are segmented by distinct risk parameters, asset sets, and governing rules. The platform supports three core securities financing use cases: securities-backed lending (where tokenized securities serve as collateral to borrow GHO

Aave faced a withdrawal onslaught of $8.45 billion during the rsETH crisis, reigniting debate on DeFi risk management capability

June 19, 2026 — following an April 2026 attack on KelpDAO’s rsETH cross-chain bridge, Aave saw roughly $84.5 billion in user funds flow out of its protocol. Even so, Aave’s core functionality remained fully intact, marking one of the largest DeFi stress tests to date that the platform passed successfully. The crisis originated with an attack on KelpDAO’s LayerZero cross-chain bridge, which led to the theft of about $292 million worth of rsETH. This sparked widespread market anxiety over rsETH’s value and solvency as collateral. Since rsETH is used as collateral across multiple DeFi protocols, including Aave, the risk spread rapidly, triggering a massive wave of withdrawal requests. Some Aave markets hit 100% utilization rates, leaving some users temporarily unable to access their funds. To address the emerging liquidity crunch, Aave’s risk management team implemented emergency freezes and adjusted key parameters to contain risk contagion. Aave founder Stani Kulechov called the incide

Grayscale: AAVE Could Surge to $175 in the Next Year

**Crypto Token Valuation Updates: Grayscale, CoinShares Release Forecasts (June 18)** Grayscale Research’s latest June 18 report projects Aave’s native token, AAVE, will hit $175 in a 12-month baseline scenario. The asset management firm explained that as traditional finance valuation models are adopted for decentralized finance (DeFi) tokens, AAVE’s current fair value stands between $80 and $100. Grayscale estimates Aave will generate roughly $60 million in net income by 2026, using methodologies including discounted cash flow (DCF), earnings multiples, and comparisons to banks and fintech companies for its analysis. The report also highlights Aave’s revenue trajectory: it’s on pace to grow more than sixfold between 2023 and 2025, with an expected profit margin of around 50%. Key growth drivers cited are Aave’s lending operations, its GHO stablecoin, and institutional-focused products. However, Grayscale warned protocol revenue alone does not guarantee token value, noting that fees a

The Venus Attacker Sells 1912 ETH to Repay Loan, Still Owes 6.78 million USDT on Aave

June 15 – Per PeckShield’s on-chain monitoring, the attacker behind March’s Venus THE collateral liquidation event sold 1912 ETH one hour ago, exchanging it for $3.26 million in USDT to settle their outstanding loan on Aave. Back in March, this attacker had collateralized ETH to borrow 9.92 million stablecoins via Aave. They then purchased THE, deposited it into Venus to borrow additional assets, and ultimately dumped THE – a move that triggered the liquidation of their THE collateral on the Venus protocol. As of now, the attacker still holds $6.78 million in USDT outstanding on Aave.

The U.S. government has transferred approximately $216,000 in assets seized from the FTX case, involving LINK, AAVE, and other cryptocurrencies.

June 11: Per OnchainLens monitoring, the U.S. government has once again transferred roughly $216,000 in assets from seized FTX/Alameda funds, bringing the cumulative total of such transfers to $984,000. The assets involved in this latest transfer include LINK, AAVE, CHZ, BAL, and other crypto assets.

There has been another update to the US government address, with a transfer of approximately $208,000 AAVE.

Crypto Update: June 11 — Data from Arkham shows the address linked to U.S. government-seized funds from the FTX/Alameda bankruptcy case has made two recent transactions. Just four minutes ago, this address transferred roughly 3,332 AAVE tokens, worth approximately $208,000. Earlier today, the same address sent out 98,589.87 LINK tokens valued at around $769,000, which have now been deposited into Coinbase Prime.

A certain whale has deposited a total of $132 million into Aave V3 to short ETH. After borrowing 35,000 ETH, they sold the assets.

On June 9, monitoring by Onchain Lens reveals a cryptocurrency whale has continued depositing USDC and USDT into Aave V3 to short ETH. To date, this whale has deposited a total of $132.16 million worth of USDC and USDT, while borrowing 35,001 ETH that has been transferred to Binance for sale.

Aave Founder Defends $8.45 Billion Liquidation, V4 Upgrade to Revamp Risk Management System

June 8. This April, KelpDAO—a LayerZero-based cross-chain bridge—was hit by a $292 million exploit, sparking an $8.45 billion deposit run on DeFi lending protocol Aave within 48 hours. Amid mounting external scrutiny of the protocol’s risk controls, Aave founder and CEO Stani Kulechov argued the incident actually proved Aave’s “resilience.” Speaking at the Paris Proof of Talk conference, Kulechov noted Aave V3 has weathered multiple market cycles and stayed stable even in extreme conditions. He attributed recent DeFi security breaches to third-party infrastructure flaws rather than vulnerabilities in Aave’s own smart contracts. But risk analysis firm LlamaRisk explained the attacker exploited a KelpDAO vulnerability to mint valueless collateral, deposited it on Aave to siphon off real wETH, leading to roughly $1.237 billion in defaults for Aave V3. To resolve the crisis, the Aave DAO swiftly transferred 25,000 ETH, with Kulechov personally contributing an extra 5,000 ETH—totaling a ~

A certain whale deposited 9,000 ETH into Binance after borrowing from Aave, approximately $14.7 million

On June 7th, monitoring from Onchain Lens shows a whale deposited 34.74 million USDT into Aave V3 as collateral, borrowed 9,000 ETH valued at roughly $14.7 million, then transferred those ETH to Binance.

A particular whale has borrowed a total of $76.42 million from Aave today to purchase 44,845 ETH.

June 5th (via ChainNews): A crypto whale continued borrowing $32 million USDT to open a leveraged long position for 18,994.5 ETH just 20 minutes ago. Today, the same whale has taken out a total of $76.42 million in USDT loans from the Aave protocol to purchase 44,845 ETH at an average price of $1,704 per ETH.

Viewpoint: Cryptocurrencies such as AAVE, SOL are Undervalued, Next Opportunity may come from Assets Currently being "Overlooked" by the Market

On June 4th, Lorenzo Valente, ARK Invest’s Director of Digital Assets Research, pointed out that countless under-the-radar crypto protocols are flying under the radar in today’s market. Numerous projects have plummeted 70% to 90% from their all-time highs yet continue generating consistent fees, sustaining growth, and holding top positions in their niche sectors. Valente highlighted key examples: Aave sports a P/E ratio of roughly 9, Solana boasts a P/E of around 12 and $6 billion in free cash flow, Ethereum’s P/E sits at ~17, and Uniswap trades at an EBITDA multiple of approximately 8x. He also named projects including Avalanche, Pendle, Ethena, and Morpho, noting that had these assets been valued against 2021 VC standards, they would have been top picks for venture capital firms—yet the market is currently sleeping on them. Valente argues today’s market is fixated on chasing HYPE and NEAR (the go-to crypto trading narratives right now), but the next big winning trade could come fro

Aave V4 is exploring integration with the Arc network

On June 1, Arc—the Layer 1 blockchain developed by Circle—announced that Aave V4 is currently exploring integration with the Arc network, with plans to bring its cutting-edge liquidity protocol infrastructure into Arc’s ecosystem. If this collaboration moves forward successfully, developers will be able to leverage familiar on-chain lending tools to run a stablecoin-native lending workflow on Arc, supporting Arc-native assets including USDC, EURC, and cirBTC.

Aave Releases April 18th rsETH Incident Retrospective

May 31 — Aave published a postmortem report for the April 18 rsETH incident, detailing that Kelp’s rsETH LayerZero V2 cross-chain bridge (used for Unichain to Ethereum transfers) received a forged message during a cross-chain transaction. This breach resulted in 116,500 rsETH being minted on Ethereum without a corresponding burn of tokens on Unichain, creating a balance discrepancy. Aave confirmed the attack targeted third-party cross-chain bridge infrastructure. The attacker deposited the stolen rsETH into eight Aave V3 positions, from which they borrowed 82,650 WETH and 821 wstETH, impacting Aave’s markets. Per the report, the attacker’s rsETH holdings on Arbitrum have been burned. To fix the shortfall, LayerZero’s OFT adapter minted 116,131.72 rsETH across five batches, fully restoring rsETH’s asset backing. Both the affected WETH and rsETH markets on Aave have returned to normal functionality.

Aave Proposes Establishment of Unified Listing Standard: High-Risk Assets or Restricted Listing and Scalability

On May 29, Aave Labs rolled out a new proposal to establish a unified technical review framework for assets across Aave V3, V4, and Horizon. This framework will set standardized processes for three core areas: new asset listings, scalability checks for existing assets, and ongoing reviews to keep supported assets compliant long-term. Per the proposal, all assets added moving forward must meet a range of technical criteria, including ERC20 compatibility, reliable oracle integration, secure bridge infrastructure, robust permission controls, transparent minting mechanisms, and a completed audit. The framework also introduces continuous monitoring to uphold long-term alignment with the protocol’s security standards. Aave notes this framework is designed to address the "hidden risks" tied to certain assets—like unlimited minting, overly weak upgrade permissions, mismatched bridge supply levels, unclear redemption routes, and reliance on off-chain custody. Though these issues might not sho

Aave's UK Subsidiary Receives FCA Approval, Becomes UK Crypto Exchange Provider

May 28: Aave Labs’ U.K. subsidiaries Push Labs Ltd. and Push Virtual Assets Ltd. have received formal approval from the U.K. Financial Conduct Authority (FCA) to register as authorized local cryptocurrency exchange service providers. According to Aave, these licenses allow Push to conduct compliant cryptocurrency and payment-related operations in the U.K., paving the way for upcoming product launches including zero-fee stablecoin deposits and withdrawals.

A certain trader bought 7,000 Ethereum and deposited it into Aave

On May 27, per monitoring from LookOnChain, a trader bought 7,000 Ethereum in one hour for approximately $14.52 million, then deposited the funds into Aave. Prior to this move, the same trader had netted a total of $2.04 million in profits from two successful Ethereum scalping trades.

Aave Founder: Revenue-Oriented Strategy to Continue Over the Next 12 Months

May 24 — Aave founder Stani Kulechov has reaffirmed the protocol’s “revenue-focused” strategy, stressing that revenue is essential to the long-term sustainability of decentralized finance (DeFi). Data shows Aave V3’s revenue has significantly outpaced that of other lending protocols over the past 12 months. Looking ahead to the next year, Kulechov outlined Aave’s strategic priorities: diversifying revenue streams, boosting profit margins via the GHO stablecoin, and evolving the Aave App into a distribution layer controlled by AAVE token holders. These initiatives are aimed at further strengthening the protocol’s profitability and enhancing user retention, he noted.

A certain whale increased their holdings by acquiring 11,000 AAVE tokens at an average price of $89.24 and deposited them into Aave V3.

On May 20, per OnchainLens’ monitoring, a crypto whale allocated $1 million in USDT to purchase 11,206 AAVE at an average price of $89.24, then deposited these tokens into Aave V3. The whale also holds 5,007 ETH, which is currently valued at $10.56 million.

Aave Upgrades SavingsGHO Vault to 4.25% APR, Original stkGHO Rewards to End After 7 Weeks

On May 18, Aave announced an upgrade to its SavingsGHO offering, launching a new vault that provides a 4.25% APR Aave Savings Rate. Important update: Rewards for the legacy version of SavingsGHO—stkGHO—will end in 7 weeks. To continue earning rewards, users must manually migrate their holdings to the new vault. This upgrade also introduces GhoRouter, a tool that lets users seamlessly swap between USDC, GHO, and SavingsGHO in a single transaction, simplifying both asset migration and access to these assets. The migration and deposit interfaces for the new vault are now live on AaveApp.

Kelp: Will Partner with Aave in the Next 24 Hours to Execute rsETH Backing Flow-Related Smart Contract Operations

On May 9, rebase protocol Kelp DAO issued an update regarding the rsETH exploit, noting that the Kelp team will coordinate contract operations with Aave over the next 24 hours as part of the next phase of rsETH underlying asset support. During this period, users do not need to take any action. The reopening window and subsequent steps will be announced via official channels.

U.S. Court Approves Aave Transfer of $71 Million ETH Value in Connection with North Korean Hack

**On May 9, U.S. District Judge Margaret Garnett approved Aave’s asset recovery plan following the rsETH exploit, clearing the transfer of ~$71 million in ETH—previously frozen on Arbitrum—to a wallet controlled by Aave.** Court filings reveal the ruling adjusted the prior restraining order against Arbitrum DAO, enabling the community to complete the ETH transfer via an on-chain governance vote—while waiving legal liability for those voting and executing the transfer. The incident stemmed from the April rsETH exploit, widely linked to North Korea’s Lazarus Group. Earlier, lawyers representing victims of North Korean terrorism had pushed to freeze the assets and sought to include them in an ~$877 million outstanding judgment. The Arbitrum community showed overwhelming support in a Snapshot temperature check vote to return the frozen ETH to Aave’s recovery plan, though formal on-chain governance approval is still required for the actual transfer. The case also forms part of U.S. pl

Aave: Launches rsETH Incident Compensation Tool, Focusing on Resolving rsETH Minting Issue and Restoring Market Functionality

May 9 — Aave has unveiled the Phase Two update for its rsETH incident recovery plan. On April 28, Aave rolled out its V3 technical recovery solution for the rsETH hack, with progress now made on both Ethereum Mainnet and Arbitrum. On May 6, 8 Aave V3 positions linked to the attacker were successfully liquidated, and the recovered rsETH collateral was sent to the Recovery Guardian per the Aave Improvement Proposal (AIP). Other users — including Umbrella stakers — were unharmed. Plus, governance proposals from Mantle DAO and Arbitrum DAO have been greenlit. The latter signed off on returning $71 million worth of recovered ETH to Aave for the DeFi United joint recovery push. Legal wins are also in the books: a court order has cleared Arbitrum DAO to send frozen ETH to Aave LLC via on-chain voting, with the restraining order to be issued after the transfer. Aave LLC is now waiting for a final court ruling. As a stopgap, the team has borrowed extra funds to cover the shortfall — ensur

Mantle token holders have approved granting Aave a 30,000 ETH credit line to assist AAVE in addressing the rsETH exploit event

On May 8, Mantle token holders approved a credit line of up to 30,000 ETH (roughly $68 million) for Aave DAO via Proposal MIP-34. The move aims to address potential defaults stemming from the April rsETH exploit on Aave V3, with estimated default amounts ranging from $123.7 million to $230.1 million. The proposal passed a seven-day Snapshot vote, authorizing the Mantle Foundation to negotiate with Aave DAO and execute the final loan agreement. Implementation of the credit line remains contingent on Aave executing its recovery plan and finalizing specific terms. A Galaxy Research report noted the rsETH exploit left Aave’s WETH market in prolonged tension, with fund utilization rates above 99% for 12.7 consecutive days. As of May 8, utilization in Aave’s Ethereum V3 WETH market has dropped to around 91.6%, easing market pressure.

Aave to Overhaul Collateral and Asset Listing Standards

On May 7, 2026, Linda Jeng—Aave Labs’ Chief Legal & Policy Officer—announced at Consensus Miami 2026 that Aave will fully overhaul its asset listing and collateral evaluation rules. Previously, the protocol’s risk framework centered mainly on price volatility and financial risks; it will now be expanded to cover network security vulnerabilities, interoperability, and assessments of underlying technology architecture. Aave also plans to release an official minimum standards guide for project teams to reference, and will shift from analyzing individual money markets in isolation to evaluating cross-protocol systemic risk. This change will enhance overall security and is expected to set a reference standard for the decentralized finance (DeFi) industry.

Aave has liquidated the remaining rsETH holdings of the Kelp DAO attacker, as the DeFi community pushes forward with a $292 million attack aftermath.

On May 7, Aave announced it has completed the liquidation of the remaining rsETH position held by the Kelp DAO attacker. The associated collateral will be transferred to DeFi United’s Recovery Guardian multisig wallet to replenish the rsETH reserve and compensate affected users. This liquidation is a key step in the $292 million Kelp DAO attack recovery plan. Earlier, the Aave community approved a governance proposal to temporarily adjust the rsETH oracle price, making the attacker’s position undercollateralized and triggering liquidation. Aave noted all related parameters will be fully restored post-liquidation, with no long-term impact on the protocol. The incident began on April 28, when an attacker reportedly tied to North Korea exploited a cross-chain bridge vulnerability in LayerZero-based Kelp DAO to fraudulently mint roughly 116,500 unbacked rsETH on Ethereum. The attacker then cashed out ETH via lending protocols including Aave and Compound. Following the attack, the DeF

Aave Proposes Emergency Motion to Reverse Asset Freeze Notice on Arbitrum DAO

May 4 — Official sources confirm Aave LLC has filed an emergency motion to overturn an asset freeze notice issued to the Arbitrum DAO on May 1, 2026. The notice sought to freeze roughly $71 million in ETH tied to victims of the April 18, 2026 attack. Aave noted that mere theft does not convey legal ownership of stolen assets — a well-established legal principle. The recovered funds are earmarked for return to users who incurred losses in the April 18 attack; freezing these assets directly harms the very users the recovery effort is intended to protect. Aave has requested the court schedule an emergency hearing to temporarily lift the freeze order and continues collaborating with the Arbitrum community and DeFi United to compensate affected users.

Aave Unveils rsETH Recovery Plan, DeFi United Successfully Raises Sufficient ETH

April 28 — Aave officially announced its technical plan to restore support for rsETH via social media on Tuesday. Aave noted that DeFi United has secured sufficient ETH, which was deposited in batches into a cross-chain vault to mint rsETH proportionally, closing the gap. This makes rsETH fully backed by underlying ETH assets, enabling the cross-chain bridge to resume operations safely. For specific steps: - Via governance proposals from Aave and Compound, the rsETH oracle price will be temporarily adjusted to trigger controlled liquidations. - Recovered rsETH will be redeemed for ETH via Kelp’s official process to cover shortfalls in Aave and markets across chains. - Compound will execute similar steps, with an estimated ~16,776 ETH to be recovered. - All temporary settings will revert to their original state immediately upon completion.

Possibly Due to Circle Acquisition, AAVE Surges Over 3.7%

April 27: HTX data shows AAVE jumped more than 3.7% in the past hour, likely driven by Circle’s acquisition, and is currently trading at $98.75.

Circle Ventures has announced a purchase of AAVE tokens to support the DeFi community

On April 27th, Circle announced via social media that Circle Ventures is purchasing AAVE tokens—because a robust DeFi infrastructure won’t build itself. Aave is helping shape the future of on-chain finance, and Circle is supporting this ecosystem alongside the entire community built around it.

Aave Proposes Community Vote on Token Buyback Suspension

On April 27, TokenLogic—a service provider in the Aave ecosystem—put forward a new governance proposal calling for a temporary pause to the AAVE token buyback plan. The proposal states the pause will remain in effect until further details emerge on the rsETH incident, with the exact timing of the buyback’s resumption to be set via subsequent reviews.

DeFi United has raised 10.2K ETH, fueling AAVE's surge above $100

**April 27 Update: Aave-Led DeFi United Rescue Mission Tops 102,000 ETH in Funding** Per the official website, the Aave-led DeFi United ecosystem rescue mission is making continued progress, having raised more than 102,000 ETH to date. Key commitments and participants include: - Arbitrum DAO: Released 30,765 ETH frozen following the April 18 rsETH incident - Mantle: Intends to contribute 30,000 ETH - AaveDAO: Plans to contribute 25,000 ETH - Aave founder Stani Kulechov: Confirmed he will provide 5,000 ETH - EtherFi: Intends to provide 5,000 ETH - Lido: Plans to contribute 2,500 stETH - Golem Foundation & affiliated projects: Combined 1,000 ETH Additionally, LayerZero, Ethena, Frax Finance, the Ink Foundation, and others have confirmed participation, though specific contribution amounts remain undisclosed. Per HTX market data, AAVE rebounded above $100 before pulling back, currently trading at $99.91 with a 24-hour gain of 4.08%.

Aave Founder Proposes Establishment of a Treasury Reserve: Using Earnings to Repay Aave Shortfall and Prevent Market Panic

April 24: Marc Zeller, founder of Aave Chan Initiative (ACI)—an Aave ecosystem contributor—posted a message proposing a non-donation approach to address a deficit, rather than launching a donation drive. The proposal includes: - Creating a deposit vault named “DeFi United ETH” - Redirecting Aave’s wETH revenue to the vault, with a 5% annual yield cap - Tokenizing the vault’s deposit certificates for trading under the name “AaveETH” - Using interest and principal to gradually cover the deficit Zeller also recommended allowing user deposits and capping the vault’s capacity at the size of the worst-case deficit. He noted that if this approach had been adopted earlier, enough funds might have been raised as early as last Saturday. He emphasized Aave’s financial strength: the protocol generates sufficient income, and both Aave DAO and Labs hold reserves in the hundreds of millions of dollars—enough to resolve the issue without sparking market panic. Zeller added he would de

Bybit CEO: Bybit Will Vote to Support the Mantle Proposal to Provide Liquidity to Aave

On April 24, Bybit co-founder and CEO Ben Zhou took to social media to announce that Bybit will vote in favor of a Mantle community proposal to provide a loan for a coordinated rescue effort involving Aave. As Mantle’s largest holder and supporter, Bybit is backing the plan. Zhou noted that when Bybit was hacked, the industry rallied to assist it—and now, facing a similar challenge, reciprocating is the only right call.

Aave's "Liquidation Wall of Fame" Exposed: Potential Support of 43,500 ETH Received, Sinkhole Reaches 68,900 ETH

April 24: Following the rsETH security incident, Aave faces a funding shortfall of ~68,900 ETH ($160M) — a gap stemming from the hacker borrowing 99,600 ETH, with Arbitrum freezing 30,700 ETH of that sum. In response, Aave has spearheaded the launch of the "DeFi United" joint rescue initiative, which has so far received potential commitments totaling ~43,500 ETH. Key participants include: ? Lido Finance: 2,500 stETH (pending proposal approval) ? EtherFi Foundation: 5,000 ETH (pending proposal approval) ? Stani Kulechov: 5,000 ETH (personal donation) ? Golem Foundation: 1,000 ETH ? Bybit’s Mantle: 30,000 ETH (pending proposal approval) Additional backers — including Ethena, LayerZero, Ink Foundation, and Tydra — have pledged support but not disclosed specific amounts. Overall, current commitments still fall short of fully covering the shortfall. The DeFi industry is working to complete critical repairs via a "joint capital infusion" framework before systemic risks spr