>AAVE has hit 100% utilization on 3B+ dollars in stablecoins>literally zero threads about itAre you fuckheads too dumb to understand how bad this is? This deserves at least one "NUCLEAR HAPPENING" thread.
>>62135396Explain it to me like I'm 5
>>62135396>future of financeit's over for crypto
>>62135396>Future of finance was just to be a middle man for money market funds on stables
> be in defi> put usdc on aave at 3% apy> "safe yield. lowest-risk play."> can't withdraw because kelpdao got drained> because kelpdao used layerzero> because layerzero trusted 3 rpc servers> because north korea ddos'd 3 rpc servers> layerzero: "the protocol worked as intended"
>>62135426Almost no stablecoins available for DEFI loans (people putting up their USDT/USDC etc for yield which is loaned to other people). This causes a spike in the APR (currently around 15%, average is about 3%). This will probably self-correct as people jump in for the higher yield, increasing supply.
Never trust a lending platform where they offer higher rates than short term treasuries
>>62135467Will this increase all stake token yields?
>>62135485Actually, seems I missed that there was some fuckup with bad debt. I asked Grok for a tl;dr:TL;DR: Aave is in a major liquidity crisis and bad debt scare right now (April 19-20, 2026) triggered by a $292M KelpDAO rsETH bridge exploit.What happened (super short)Attacker drained rsETH (restaked ETH from KelpDAO) via a bridge exploit.They dumped the now-unbacked rsETH onto Aave as collateral and borrowed ~$196-236M in WETH.Result: Aave now sitting on ~$177-200M+ in bad debt (uncollectible loans).Immediate falloutAave froze rsETH markets on V3 + V4 (and WETH in affected chains: Ethereum, Arbitrum, Base, etc.) out of caution. Protocol itself was not hacked.Panic withdrawals: $5-8B+ TVL evaporated in ~24h (one of the biggest single-day outflows ever).WETH utilization hit 100% on Ethereum mainnet suppliers can’t easily withdraw. Other pools (USDT/USDC) also near full. Lenders are stuck in some cases.AAVE token crashed ~20% to ~$90. Whales dumped millions.Current status (as of Apr 20)Aave says rsETH on Ethereum is still fully backed per their analysis, but frozen anyway while they assess fixes.Team is isolating risk, no new borrowing against rsETH, actively working on resolutions.V4 (just launched) and the rest of the protocol are still running, but confidence took a big hit.This is the hottest topic in DeFi right now — classic “collateral suddenly becomes worthless cascade” risk that lending protocols always warn about. Situation is stabilizing but still tense; watch official @aave updates.
>>62135396True and bump.
Had to Uniswap my shit because I couldn't withdraw, even Uniswap started to fail, future of finance guys.
should have used chainlink
>>62135396I'm sure they'll figure it out. AAVE is the #1 defi platform lol. Some rich fags will loan them money with a lot of points and everything will be fine.
>>62135573>too big to fail
>>62135573Nigger those very same rich guys are the ones who pulled out immediately when they found out. Also the foundation agreed to a $25 million payout in exchange stakers get the protocol revenues. They volunteered to give up $150 million worth of revenue that they generated up until now. They know what’s up. Aave is gonna implode soon.
curve will turn aave into a powerhouseand by curve I mean the Llamasthese low tier risk assessments are over no more jeets
>>62135396>WAAAA NUCLEAR HAPPENINGDo people still come here for happenings? This board is beyond dead.evisceratedbogged beyond all recognition. You can find generals from ONE FUCKING MONTH ago and your usual LINK bagholder threads from 1 week ago. If it wasn't for /smg/ this place would average single digit posts per day. Anyways I'll see you at page 10 in about a week.
tfw live savings stuck in aave
>>62136408i'm so stressed out i cant even spell life
>>62135396scam
>>62136409>>62136408Are you joking or are you for real?
>>62136408No crying in the yieldsino
I have zero horses in this particular race but IMHO it'll bounce back.
>>62136408Nigger, swap that shit on Uniswap, take a hit and move on.
You now remember Rubic
>>62136890kek>>62136927they're too big to fail, they'll be bailed out
>>62136949did it stay cubic?
This is a nothing burger. Aave experiences this every now and then. Its like seasons.USDT/Yearn Exploit (April 2023)Harmony Bridge Hack (June 2022)its actually the best time the buy AAVE then dump once its RSI reaches over 60, then wait for the next one. And why yes I do own tonnes of kleros.
>>62137035That's nice, why don't you go supply some liquidity and get a nice 15% yield?
>>62135396Then why is this piece of shit coin still at 2022 bear market bottom price?
>>62135467Why are people borrowing stables??? Is cash king or are they borrowing to buy the bottom
>>62135467>OH MY GOSH JUMP IN RIGHT NOW GUYS FOR YOUR HECKIN 13% YIELD RIGHT BEFORE THE UNDERLYING COLLAPSES -99%Seen it before. Crypto is so dead.
>>62135467Who the fuck is willing to borrow at 13%? Just use the banks nigger.
>>62137319The attacker. They deposited the spoofed asset and withdrew a bunch of real money, which maxed out the utilization rate (and therefore interest rate). Now AAVE is in a tough spot. To get rates down there need to be more depositors. AAVE could cover this themselves but it would involve vaporizing a lot of their own money, when KelpDAO still actually does have all of the original ETH in their possession. But KelpDAO also doesn't want to pay, when it was LayerZero that fucked up. Meanwhile it remains to be seen how LZ will try to pass the buck. I doubt they want to pony up 200 million dollars either.
>>62137118If there’s no borrowers they can always shove that money in bonds.
>>62137349everyone from LayerZero Labs needs to go to jail and get raped there by niggers daily for 20 years
I have no idea what this is. I just bought Bitcoin though.
>>62135396You know what's crazy? i had many stable coins a year ago. I deposited them on aave. I thought why didn't i do it before? would have made some sizeable cash over the years.Anyway. after a while i start having second thoughts. The risk is there , basically i told myself yeah you make 6% + a year doing nothing but if the risk is 100% loss, with the number of hackers salivating over aave in the world it didn't seem like a good idea. So eventually i started splitting my usdc between aave and binance, and eventually i removed like half of it thinking at least if something bad happens i won't lose it all, then started thinking to leave only 10% in staking to pay for fees and shit. Then removed all of it because and bought some low priced alts.So turn out i was fucking right, never underestimate the risks. Even staking has some risk (like real direct staking not defi lending like aave)
>>62137782Do you think you look hot/handsome taking photos of yourself shirtless with a cigar and looking to the left? Faggot.
