Ethereum mainnet

Aave Risk Manager Models Two Scenarios for $293M Kelp DAO Exploit Impact

Aave's risk management provider LlamaRisk outlined two scenarios for how the $293M Kelp DAO exploit could impact the DeFi ecosystem. Scenario one spreads losses across all rsETH holders resulting in $123.7M bad debt with 15% depeg risk. Scenario two shifts losses to L2 networks creating $230.1M bad debt. Nearly $10B has exited Aave since the Saturday exploit, while Aave's $181M treasury could help cover losses.