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

Odaily News DeFi lending protocol Aave successfully maintained operations after experiencing approximately $8.45 billion in fund outflows, but the event has simultaneously sparked renewed market discussion regarding 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, with approximately $292 million in assets stolen, triggering 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 withdrawals by users.

During the capital outflow, liquidity in certain lending markets was rapidly depleted, with utilization rates briefly approaching 100%. Aave managed the situation by adjusting risk parameters and activating emergency mechanisms, although localized withdrawal restrictions did occur.

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

However, analysts pointed out that this event exposed structural risks within DeFi: high coupling of assets across protocols, reliance on external bridged assets as collateral, 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 systemic cascading effects. Although Aave successfully passed this stress test, the outcome does not equate to the elimination of risk.

Overall, this event is viewed 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)