MPosts: 4 · Reputation: 106
Just wanted to give a heads up to everyone. If you’re holding crypto in Aave V3, it’s a good idea to withdraw it for safety's sake.
KelpDAO just got hit with a $280 million hack, and this could lead to more issues in the DeFi space, including the risk of bad debt in Aave V3.
SPosts: 432 · Reputation: 1445
It's already too late, no liquidity left and utilization is already 100%. AAVE has also paused the market leaving people with bad debt. AAVE maybe gonna activate their umbrella safety module. High chance of haircut for any WETH supplier.
$292m vanished into thin air and everybody got their money stuck. Very unfortunate.
DPosts: 308 · Reputation: 1050
I know this gonna happen, if you guys watched movie called "Big Short" this is exactly the same, wrapped token especially from Eigen or platform like kelpdao supposed for proof only not been used for daily transaction.
Btw, if you take a look https://app.aave.com/ almost all restaked token are disabled for borrowing that include Coinbase Staked ETH token. I do believe from this alone lot of people affected and maybe mass liquidatation.