Aave survives $8.45 billion withdrawal pressure, but DeFi hidden risks come under renewed scrutiny

Odaily Planet Daily News DeFi lending protocol Aave successfully maintained operations after experiencing approximately $8.45 billion in capital outflows, but the event has also sparked renewed market discussion about its risk structure and the fragility of the DeFi system.

This stress event originated from a vulnerability attack on the KelpDAO rsETH cross-chain bridge in April 2026, resulting in the theft of approximately $292 million in assets, which triggered market concerns about the safety of rsETH as collateral. As this asset was widely used as collateral on Aave, panic quickly spread, leading to concentrated user withdrawals.

During the capital outflow, liquidity in certain lending markets was rapidly depleted, with utilization rates approaching 100% at one point. Aave managed the situation by adjusting risk parameters and activating emergency mechanisms, but localized withdrawal restrictions still occurred.

Nevertheless, Aave's core smart contracts were not breached. Protocol founder Stani Kulechov stated that the event validated the system's stability and resilience under extreme pressure.

However, analysts point out that this incident has exposed structural risks within DeFi: high coupling of assets across protocols, reliance of collateral on external bridged assets, and the potential for liquidity to dry up rapidly under extreme conditions.

Industry observers believe that while DeFi's "composability" enhances efficiency, it also accelerates risk transmission, potentially causing a single asset event to trigger a systemic chain reaction. Although Aave successfully passed this stress test, the outcome does not equate to the elimination of risk.

Overall, this event is seen as a real-world extreme stress test for the DeFi lending system: the system can function, but its stability remains highly dependent on the quality of external assets and market liquidity conditions. (Cointelegraph)