Aave reopens WETH borrowing after Kelp DAO $230M exploit
May 18, 2026
Aave V3 markets on Ethereum, Arbitrum, Base, Mantle, and Linea resume wrapped ether borrowing as systemic risk eases
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.
The largest DeFi exploit of 2026 has wiped $13 billion from the sector in 48 hours as LayerZero links North Korea to the attack.
Attackers forged LayerZero messages to mint 116,500 rsETH, triggering market freezes on Aave, SparkLend, and Lido.