A $300 million borrowing spike on Aave signals liquidity crunch after exploit
CoinDesk·2h ago·Fear
What Happened
Following Saturday's KelpDAO exploit, Aave users borrowed approximately $300 million against USDT deposits within 24 hours, signaling a liquidity crunch. With stablecoin pools at maximum utilization, depositors cannot withdraw funds and resort to taking loans against their own deposits at losses to access liquidity. The spike reflects desperation rather than genuine demand.
Key Entities
AaveKelpDAOUSDTSparkDeFi$300 million