$14 Billion Vanishes from DeFi Ecosystem After KelpDAO Exploit

The recent KelpDAO exploit has sent shockwaves through the decentralized finance (DeFi) ecosystem, leading to widespread withdrawals and a significant decline in total value locked (TVL). According to data from defillama.com, the TVL has dropped by approximately $14.17 billion since April 18, falling from $99.49 billion to the current $85.32 billion.

Aave, once one of the top DeFi protocols by TVL, has been severely affected, with its TVL declining by 32.44% over the past week. The exploit drained nearly $300 million from Aave, leaving it with bad debt and freezes. Other major DeFi protocols have also seen significant outflows, with many recording declines of over 20%.

However, not all DeFi protocols have been affected equally. Liquid staking platforms, real-world asset (RWA) products, and similar vehicles have actually posted gains over the past seven days, attracting inflows despite broader strain in the market.