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Aave moves onto Solana as part of rescue efforts after latest $290M exploit hit DeFi hard – Crypto News

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4 days ago

April 28, 2026

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AAVE, the native token of the Aave DeFi platform, is now available on the Solana blockchain network.

The move will give Solana users access to one of the largest lending protocols in decentralized finance without leaving the network.

This came less than two days after the Solana Foundation revealed that it would deploy part of its treasury into Aave.

Through this action, the non-profit joined a broader industry effort to contain the fallout from the KelpDAO rsETH $292 million exploit and restore confidence in decentralized lending markets.

DeFi lost $13B this month as the KelpDAO rescue shows both the best and worst of DeFi

The rescue effort that has already lined up tens of thousands of ETH also exposes the uncomfortable reality that DeFi’s biggest crises still depend on multiple factors.

Apr 26, 2026 · Gino Matos

Solana Foundation aids Aave recovery

On April 25, Lily Liu, chair of the foundation, said the nonprofit is lending USDT to Aave to support recovery efforts after the exploit left major DeFi protocols exposed to unbacked collateral and liquidity stress.

The step marks an unusual cross-chain intervention by Solana, which has spent years building its own DeFi economy around native lending, trading, and liquid staking applications.

It also gives the foundation a direct role in a recovery effort centered on Aave, a protocol more closely associated with Ethereum and its layer-2 networks.

Liu framed the move as support for the broader open-finance market, saying blockchain economies do not operate in isolation and that Solana’s long-term health depends on a functioning DeFi sector beyond its own ecosystem.

For Solana, the intervention signals that competition among chains does not preclude coordination when a failure threatens the market structure on which they all depend.

Six years after “DeFi Summer” is the sun already setting on the decentralized finance revolution?

DeFi hits “trust squeeze” as hacks erode credibility and TradFi’s tokenization surge could push it into something darker

Apr 20, 2026 · Liam ‘Akiba’ Wright

A bridge failure becomes a DeFi problem

The April 18 $292 million exploit began with KelpDAO’s rsETH, a liquid restaking token, after attackers allegedly exploited a weakness tied to its LayerZero bridge configuration.

According to reports, the attackers were able to redeem 116,500 unbacked rsETH tokens on Ethereum before depositing the assets as collateral across Aave, Compound, and Euler, then borrowing roughly $292 million in ETH and other assets.

This action caused broader contagion, especially in Aave’s lending markets, where platform users exited en masse, and resulted in WETH utilization reaching 100% within hours of the exploit.

Galaxy Research explained:

“At full utilization, Aave’s design doesn’t allow withdrawals, because there is no idle liquidity in the pool to redeem against. Whoever withdraws first is made whole, while whoever comes later must wait for new supply to arrive or borrowers to repay.”

Oak Research, a crypto intelligence firm, said the mass exit led to a 17% decline in total value locked in DeFi, with Aave experiencing more than $12 billion in outflows.

The firm argued the episode could have become a defining failure for DeFi because it combined a bridge misconfiguration, a systemically important lending venue, and lenders unable to withdraw funds from depleted pools.

The liquidity crunch also showed how lending protocols can operate as designed while still importing risk from outside infrastructure.