Aave

Aave ($AAVE) is a decentralized money market that runs on the Ethereum blockchain. It’s most notable for its loan system, which allows users to earn interest on deposits and borrow assets with an interest rate. The interest rate is determined algorithmically. Originally named ETHLend in 2017, it was renamed to Aave in 2018. With the rebrand, it also updated its money market function: previously with ETHLend, borrowers and lenders were individually matched. Aave utilizes a liquidity pool system, where crypto loan assets are pooled together. Users must post collateral before borrowing but can only borrow up the value of said collateral. One benefit of Aave is that a user can gain exposure to different cryptos without having to actually own all of them.

A wallet linked to Justin Sun by onchain analysts withdrew 274 million USDT from Aave just 21 minutes after the protocol froze its rsETH markets on April 18, following the KelpDAO exploit. Key Takeaways: A wallet linked to Justin Sun pulled 274 million USDT from Aave 21 minutes after the rsETH market was frozen.

Onchain Analysts Flag Justin Sun-Linked Wallet's 274 Million USDT Exit From Aave Minutes After rsETH Freeze

LayerZero 

Kelp DAO has countered LayerZero's earlier statement, saying the 1-of-1 DVN setup under criticism was shipped as the default at LayerZero.

Kelp DAO shifts blame to LayerZero for $292 million exploit; Aave examines bad debt scenarios

An incident report published by Llamarisk to the Aave forum explains that a bridge exploit targeting KelpDAO's Layerzero V2 rsETH route on Saturday allowed an attacker to extract 116,500 rsETH from Ethereum's OFT adapter without burning any tokens on the source chain.

Incident Report: Llamarisk, Aave Service Providers Detail Kelp rsETH Hack Across Ethereum and Arbitrum Markets

Aave published a report outlining two possible outcomes: around $123 million in losses if damage is shared across all rsETH, or up to $230 million if confined to Layer 2s, with the final impact depending on how Kelp DAO allocates the shortfall.

Aave could face up to $230 million in losses after Kelp DAO bridge exploit triggers DeFi chaos

Bitcoin (BTC) price dropped 2.5% and BNB Token (BNB) fell 2.3% from Friday.

CoinDesk 20 performance update: AAVE price plummets 22.9% over weekend

The aftershocks of the Saturday's KelpDAO hack are spreading through stablecoin markets in ways that were not immediately obvious.

A $300M borrowing spike on Aave signals liquidity crunch after exploit

After attackers drained $291 million in crypto from Kelp DAO-linked infrastructure, DeFi users struggled on Aave to withdraw funds.

Kelp DAO Exploit Sparks Aave Liquidity Crunch, $6.2 Billion Withdrawal Panic

Aave, one of DeFi's largest lending protocols, is managing a liquidity crisis and an estimated $177 million to $200 million in bad debt after attackers siphoned 116,500 rsETH from Kelp's bridge on Saturday, deposited the tokens on Aave V3 as collateral, and borrowed wrapped ether (WETH) against them.

DeFi Lender Aave Battles Withdrawal Crisis After KelpDAO rsETH Exploit

The AAVE token fell 16% and deposits fled the protocol after attackers used drained rsETH as collateral to borrow wrapped ether, leaving Aave to quantify how much bad debt it is now carrying.

Aave records $6 billion TVL drop as Kelp hack exposes structural risk at DeFi lender

A KelpDAO bridge exploit has left $177M-$200M in bad debt in Aave's wETH pool. Here's what happened and what WETH depositors should do now.

‘Withdraw Now'—Inside Aave's Sudden $200M Bad Debt Crisis

Aptos (APT), up 3.8% since Tuesday, joined Aave (AAVE) as a top performer.

CoinDesk 20 performance update: AAVE rises 4.3% as trades flat

Aave DAO voted to hand Aave Labs $31.8 million in combined stablecoin and token funding on April 12, 2026, the first enforceable action taken under founder Stani Kulechov's “Aave Will Win” framework. Key Takeaways: Aave DAO passed AIP 469 on April 12, 2026, granting Aave Labs $25M in stablecoins and 75,000 AAVE tokens.

Aave Labs Secures $25M Stablecoin Grant as DAO Formalizes Revenue Control Model

The proposal directs 100% of application and product revenue back to AAVE token holders, resolving a governance dispute that began when swap fees were quietly redirected away from the DAO treasury in late 2025.

Aave passes landmark vote ending months-long fight over protocol revenue control

The Aave Chan Initiative cast the largest dissenting vote on the proposal, in line with founder Marc Zeller's prior opposition to Aave's actions.

Aave DAO approves $25 million Aave Labs funding grant in binding ‘Aave Will Win' vote

Decentralized lending giant Aave's native token fell near a 2-year-low price following news that another ecosystem contributor is leaving.

Aave Token Falls Near 2-Year Low as Risk Management Firm Becomes Latest to Depart

Chaos Labs is the latest major Aave contributor to walk away from the project following the departure of BGD Labs and ACI.

Top Aave risk manager Chaos Labs exits amid governance dispute

A key sticking point is Aave's V4 upgrade, which introduces a new architecture and significantly expands the scope of risk management.

Aave loses key risk manager, Chaos Labs, amid contributor exodus and disputes

Aave launched V4 on Ethereum mainnet on Monday, introducing a hub-and-spoke architecture that lets institutions borrow against real-world assets and fixed-rate credit products without fragmenting the protocol's existing liquidity pool. Ethereum DeFi Protocol Aave Releases V4 With Chainlink Oracles and Tokenized Collateral Markets The release shared with Bitcoin.

Aave V4 Launch Explained: Hub-and-Spoke Model, New Partners, and What Changes for Borrowers

Ethereum

The upgrade has been in development for about two years and is designed to make it easier to use Aave for a wider range of lending and borrowing activities.

Aave rolls out v4 on Ethereum, aiming to expand DeFi into real-world credit markets

Aave V4 features a hub-and-spoke architecture that concentrates liquidity to supply a wider range of markets and use cases with credit lines.

Aave V4 launches on Ethereum mainnet with ‘hub-and-spoke' architecture

OKX Wallet users can supply assets, including USDT0, xBTC, and xETH, to earn yield that compounds automatically without giving up custody.

Aave goes live on X Layer, enabling onchain lending for OKX Wallet users

In an interview with CoinDesk, Aave Labs CEO Stani Kulechov reflected on the governance debates in the Aave ecosystem, as well as what's to come for the network.

Inside Aave's governance battle as DeFi giant prepares for upgrade

Bitcoin Cash (BCH), up 0.8% from Thursday, was the only gainer.

CoinDesk 20 performance update: AAVE drops 3.2% as nearly all constituents decline

This comes as X is developing X Money, a payments system that is set to integrate cryptocurrencies into the platform.

Elon Musk taps former Base, Aave exec Benji Taylor to lead design on X

Aave's upcoming V4 upgrade introduces a reinvestment module designed to put idle liquidity to work and boost yields.

News for Aave Crypto (AAVE)