TLDR Tech / Crypto
$13 Billion DeFi TVL Wipeout in Two Days Following Kelp DAO Hack
A $292 million exploit of KelpDAO's rsETH via the LayerZero bridge triggered a 48-hour DeFi-wide panic that erased $13.21 billion in TVL, pulling the sector from $26.4 billion to roughly $20 billion by April 20. Aave absorbed the sharpest blow, losing $8.45 billion in deposits as withdrawals cascaded into protocols unconnected to the original attack, driving the AAVE token down 18%. Liquidity constraints pushed multiple lending pools to 100% utilization and borrow rates to 10-15%, compressing margins for leveraged strategies across the sector.
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