Aave Hit by Heavy Outflows as KelpDAO rsETH Scandal Rocks DeFi

The cryptocurrency market has seen another major incident with Aave experiencing significant outflows of $15.1 billion over four days due to the KelpDAO rsETH scandal. Deposits on the platform decreased by one-third, falling to $30.7 billion from $48.5 billion ahead of the scandal.

The majority of the withdrawn funds have shifted to SparkLend, a lending protocol within the MakerDAO ecosystem, which saw TVL grow from $1.9 billion to $3.2 billion with over $1.3 billion in investments during this period.