A weekend hack that drained nearly $300 million from a little-known DeFi project
has triggered broad investor concern and heavy withdrawals from Aave. According
to PeckShield, hackers placed about $200 million of stolen tokens on Aave as
collateral to borrow another cryptocurrency, raising concerns over asset quality
on the platform. Data from DefiLlama shows about $9 billion in net outflows
since Saturday, with total value locked falling more than one-third to $17.5
billion. Apollo Crypto portfolio manager Pratik Kala said depositors are exiting
due to perceived balance sheet risk, describing the response as “withdraw first,
ask questions later.”
