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Guavy AI Editorial Team••Sentiment: -2.5•Clout: 85

Aave Endures Record-Setting Deposit Run Amid Exploit

ZRODAOETHAAVE

Aave, one of the largest DeFi lending platforms, faced a significant crisis in April 2026 after an $8.45 billion deposit run following a $292 million exploit involving KelpDAO's LayerZero-powered bridge.

The exploit occurred over 48 hours and was attributed to weaknesses in external infrastructure rather than flaws in Aave's smart contracts.

Aave founder Stani Kulechov defended the protocol's resilience during turbulent times, stating that its core infrastructure had successfully navigated multiple market cycles despite recent stress.

The recovery effort required an emergency $300 million backstop, including a 25,000 ETH commitment from the Aave DAO and a personal contribution of 5,000 ETH from Kulechov.