Aave Freezes rsETH and WETH Markets Following Kelp DAO Bridge Exploit
Aave Freezes rsETH and WETH Markets Following Kelp DAO Bridge Exploit
馃敀 Aave Freezes Markets
Aave has frozen rsETH markets across V3 and V4 following a Kelp DAO bridge exploit. Analysis confirms rsETH on Ethereum mainnet remains fully backed.
Key Actions Taken:
- rsETH markets frozen to prevent new deposits and borrowing
- WETH reserves frozen across Ethereum, Arbitrum, Base, Mantle, and Linea
- Exposure to the incident has been capped
Important Notes:
- Aave's contracts were not exploited
- The issue stems from the rsETH bridge vulnerability
- Team is reviewing borrows that occurred post-exploit
Aave continues validating information and assessing potential resolutions. If bad debt accumulates, the protocol will explore options to offset any deficit.
The rsETH markets on Aave V3 and Aave V4 have been frozen. Aave's contracts have not been exploited and this is an exploit related to rsETH. The freeze follows an exploit of the Kelp DAO rsETH bridge. Freezing the rsETH markets prevents new deposits and borrowing against rsETH
Update on rsETH incident: According to our analysis, rsETH on Ethereum mainnet is fully backed. Out of an abundance of caution, rsETH remains frozen across Aave V3 and V4 and exposure to the incident is capped. WETH reserves also remain frozen across affected markets including
Aave V4 Raises Asset Caps Again as Demand Fills Capacity
**Aave V4 continues rapid growth trajectory** Supply, borrow, and credit line caps have been increased across multiple assets after reaching full capacity. This marks the latest in a series of cap raises since V4's launch. **Key milestones:** - Multiple assets hitting maximum capacity repeatedly - [LlamaRisk](https://twitter.com/LlamaRisk) proposing increases to meet demand - Caps scaling gradually under security-first approach The protocol launched with conservative limits by design. Risk managers evaluate performance before proposing increases, balancing growth with security as the system matures.
Aave Pro Gets Enhanced Reserve Pages with Interest Rate Data and Supply Caps
Aave has rolled out UI and UX improvements to Aave Pro on both mobile and web platforms. The update introduces **new reserve pages** that display: - Per-asset interest rate data - Supply and borrow caps - Top addresses These enhancements build on Aave Pro, the interface for Aave V4 that allows users to earn, borrow, swap, and monitor positions.
Aave Labs Launches Checkpoint Tool for Governance Proposal Verification
Aave Labs has introduced **Aave Checkpoint**, a new tool designed to enhance governance security and transparency. The tool performs three key functions: - Fetches onchain data from new proposals and payloads - Cross-references parameters against forum specifications - Runs automated security checks before execution Aave Checkpoint helps the community verify that governance proposals match their intended specifications before they go live, reducing the risk of errors or malicious code execution. This addition strengthens Aave's governance process by providing an extra layer of review for protocol changes. [Learn more about Aave Checkpoint](https://governance.aave.com/t/introducing-aave-checkpoint/24457)
Fireblocks Integrates Aave Earn for 2,400+ Institutions
**Fireblocks has integrated Aave into their new Earn feature**, enabling over 2,400 institutions on their platform to generate yield on stablecoin holdings. **Key Details:** - Enterprise custody platform Fireblocks now offers Aave-powered yield generation - Institutional clients can earn returns on idle stablecoin balances - Integration expands Aave's institutional reach significantly This follows Aave's recent partnership with Blockdaemon, where Aave became the exclusive provider for their Earn Stack. The Blockdaemon integration supports BTC, ETH, stablecoins, and includes access to Horizon for RWA-backed borrowing. Both integrations highlight growing institutional adoption of DeFi protocols with proven security track records.