Data compiled by Woofun AI shows Aave endured approximately $8.45 billion in fund outflows following the April 2026 attack on KelpDAO's rsETH cross-chain bridge. The theft of roughly $292 million in rsETH triggered solvency concerns, causing widespread collateral withdrawal pressures that pushed some markets to 100% utilization and temporarily restricted user withdrawals. Despite these liquidity strains, the protocol’s core functionality remained intact, successfully navigating one of the most significant DeFi stress tests to date.

Monitored by Woofun AI, the Aave risk management team deployed emergency freezes and parameter adjustments to contain contagion. Founder Stani Kulechov characterized the event as evidence of DeFi maturity, noting the system operated as designed under extreme pressure.

However, independent analysts warned that while systemic collapse was averted, the incident exposed critical vulnerabilities regarding concentration risk and high protocol interconnectivity. Observers emphasized that current safeguards, including LTV limits and isolation modes, require further optimization in governance response speed to mitigate future shocks arising from deep composability.