Aave TVL Plummets by $6 Billion, Kelp Vulnerability Exposes Structural Risks in DeFi Lending

BroadChain BroadChain learned that at 23:16 on April 19, according to CoinDesk, the price of the AAVE token fell by 16% and funds rapidly flowed out of the protocol after an attacker used depleted rsETH as collateral to borrow wrapped Ethereum. This incident forced Aave to quantify the scale of its current bad debt, with its Total Value Locked (TVL) recording a significant drop of approximately $6 billion in a short period, exposing structural vulnerabilities in collateral risk management within DeFi lending protocols.