<\/p>\n
Aave TVL has dropped by $10B since the Kelp attackers used the protocol to borrow $190 million in WETH, depositing unbacked rsETH. <\/p>\n
DeFi’s lending landscape is being reshuffled in real time as capital flees Aave in the wake of the Kelp bridge exploit, and a notable chunk of appears to be landing on SparkLend.<\/p>\n
Spark’s stablecoin lending protocol SparkLend has seen over $1.4 billion in deposits flow into it in the past few days since the $290 million Kelp bridge exploit<\/a> on Saturday, April 18, which has continued to rock DeFi since.<\/p>\n Total value locked on SparkLend surged from around $1.89 billion to $3.3 billion as of today, April 22, per DefiLlama<\/a> data. <\/p>\n Meanwhile, Aave \u2014 now the second-largest protocol in DeFi by TLV, and where the Kelp hackers’ faked funds were deposited \u2014 has seen its TVL plunge by $10 billion<\/a> over the same time frame, from above $26 billion to just over $16 billion today.<\/p>\n Per DefiLlama data, Morpho has seen the second-largest outflows in USD aftr Aave.<\/p>\n Active loans on SparkLend have climbed by roughly $500 million over the same period, suggesting the inflows aren’t just parked deposits but fresh borrowing demand.<\/p>\n The April 18 Kelp exploit saw the attacker deposit unbacked rsETH into Aave as collateral and borrowed about $190 million in real wrapped ETH (WETH) against it, leaving the protocol with between $124 million and $230 million in bad debt, depending on how Kelp ultimately allocates losses from the exploit. <\/p>\n