Flight to safety: How Maker’s Spark and USDC are winning the $10 billion Aave breakup

What Happened

Over $10 billion has exited Aave following the Kelp DAO exploit that compromised rsETH backing. Users are redistributing capital toward safer alternatives including Maker's Spark protocol, which gained 10% TVL, and stablecoins like USDC. Some capital flows into real-world asset protocols and liquid staking providers, reflecting a preference for reduced risk exposure over complex collateral structures.

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