Half of Aave’s debt rides one leveraged Ethereum bet
August 22, 2026
Galaxy data shows fewer than 9% of Aave loans hold roughly half its debt, tied to a leveraged Ethereum staking trade a wrapper depeg could unwind.
Galaxy data shows fewer than 9% of Aave loans hold roughly half its debt, tied to a leveraged Ethereum staking trade a wrapper depeg could unwind.
A reported $71 million ETH-for-equity deal would deepen Kraken’s DeFi push, but Aave’s founder says no discounted token sale is happening.
Founder Stani Kulechov called the $8.45 billion deposit run proof of resilience, but Aave survived only after a $300 million rescue.
Aave V3 markets on Ethereum, Arbitrum, Base, Mantle, and Linea resume wrapped ether borrowing as systemic risk eases
Loan-to-value ratios return to pre-incident levels as DeFi United recovery covers most of the 92 million Kelp DAO bridge shortfall
If approved, the contribution would make Aave the largest single donor in the $303M coalition restoring rsETH after the Kelp DAO bridge exploit.
More than 43,500 ETH committed by Aave, Lido, EtherFi and others to cover losses from the largest DeFi exploit of 2026.
Attackers forged LayerZero messages to mint 116,500 rsETH, triggering market freezes on Aave, SparkLend, and Lido.
Aave DAO voted unanimously for its V4 hub-and-spoke upgrade while BGD Labs and ACI announced exits over governance power disputes.