A significant incident has shaken the decentralized finance (DeFi) market, resulting in a substantial loss of value locked (TVL). On April 18, an exploit tied to KelpDAO's bridge led to the draining of around $292 million. This amount was deposited into Aave, the largest DeFi lending protocol, as collateral for 'clean' assets like ETH.
The attack is considered one of the largest DeFi exploits this year and has sent shockwaves through the market. The total value locked in DeFi protocols dropped by more than $13 billion in just two days, with Aave's TVL falling by over 30% during this period.