Aave founder touts resilience after KelpDAO hack, but incident exposed system flaws: CoinDesk

While Aave founder Stani Kulechov touted the resilience of decentralized finance in the wake of the KelpDAO hack in April, the incident actually exposed serious flaws in the lending protocol's risk management system, CoinDesk reported. The outlet noted that the attacker used KelpDAO's LayerZero bridge to steal $292 million in cryptocurrency, triggering a bank run on Aave that saw $8.45 billion withdrawn over 48 hours. Although Aave subsequently overcame the crisis with a $300 million emergency bailout, Kulechov's claims of resilience appear limited. Aave plans to address these system risks with its upcoming V4 upgrade.