BroadChain, April 25, 08:02 - On April 24, Aave, in collaboration with multiple institutions, launched the "DeFi United" rescue plan to address approximately $292 million in losses caused by a vulnerability exploit in KelpDAO. The hacker exploited a flaw in KelpDAO's integration with LayerZero, using counterfeit unbacked rsETH to borrow about $190 million in assets from Aave, triggering collateral distortion and a bank run, with the platform's TVL evaporating by roughly $10 billion. Currently, Lido Finance, EtherFi, and founder Stani Kulechov have proposed capital injection plans, with potential support amounting to approximately 43,500 ETH, but the shortfall remains at 68,900 ETH.
This crisis is essentially a capital imbalance triggered by a technical vulnerability, but it has rapidly evolved into a test of trust. Lending protocols rely on user confidence to operate; once confidence wavers, capital outflows accelerate and amplify system instability. Aave's deposit scale has notably declined, and liquidity margins are tightening, indicating that the market is undergoing structural pressure.
The "DeFi United" rescue mechanism is the first attempt in the DeFi space to address systemic risk through horizontal collaboration. Protocols such as Lido, EtherFi, and Mantle have offered financial support, but some proposals remain in the proposal stage and lack enforceability. While this mechanism is directionally correct, it suffers from structural issues such as efficiency, scale, and standardization of rules, making it more of a temporary solution than a mature system.
If the rescue succeeds, DeFi may establish a cross-protocol risk-sharing mechanism, restoring the credit of leading protocols; if it fails, user trust will further erode, capital will retreat from high-risk structures, and the risk premium across the entire DeFi system will rise. This event is essentially an on-chain stress test that will determine the market's perception of DeFi's capacity to handle large-scale assets.