Aave

Aave ($AAVE) is a decentralized money market that runs on the Ethereum blockchain. It’s most notable for its loan system, which allows users to earn interest on deposits and borrow assets with an interest rate. The interest rate is determined algorithmically. Originally named ETHLend in 2017, it was renamed to Aave in 2018. With the rebrand, it also updated its money market function: previously with ETHLend, borrowers and lenders were individually matched. Aave utilizes a liquidity pool system, where crypto loan assets are pooled together. Users must post collateral before borrowing but can only borrow up the value of said collateral. One benefit of Aave is that a user can gain exposure to different cryptos without having to actually own all of them.

Decentralized finance protocol Aave recently revealed that it has fully restored liquidity to its lending pools following a $300 million cross-chain exploit.

Aave Says Operations Back to Normal as $300M Backstop Replaces Drained Assets

An official postmortem traced the exploit to a LayerZero bridge verification failure and outlined a sweeping overhaul of Aave's asset-listing standards as DeFi risks shift beyond smart contract bugs.

Aave overhauls listing standards after $230 Million rsETH exploit exposed bridge risks

Aave Labs has obtained FCA cryptoasset registration in the U.K. for its Push subsidiaries, unlocking zero-fee fiat on-ramps.

Aave Labs secures dual UK licenses for regulated crypto payments infrastructure through local subsidiary

The blockchain research and development firm Babylon Labs submitted a Temperature Check to Aave DAO on Monday, seeking approval to integrate Trustless Bitcoin Vaults with Aave V4 and onboard native BTC as collateral without bridges, wrappers, or custodians.

Aave DAO Faces Vote on Native BTC Collateral as Babylon Labs Files Temp Check

Ethereum

The DeFi lending protocol reversed restrictions imposed after April's $292 million exploit, restoring borrowing capacity across six networks as contagion fears ease.

Aave restores ether borrowing limits after $230 million exploit

Since the $292 million KelpDAO incident, decentralized finance has endured a brutal stretch, with fallout spreading well beyond the initial exploit.

DeFi Confidence Cracks After KelpDAO Exploit as Aave Suffers 44% Monthly Drop

Multicoin Capital has moved all 286,057 of its remaining aave tokens, worth approximately $26.68 million, into Coinbase Prime, the clearest signal yet that the fund is exiting a position sitting on over $40 million in losses.

Multicoin Capital Sends Entire AAVE Stack to Coinbase Prime After $40M Loss Deepens

Onchain data shows Multicoin Capital is now more than $40 million underwater on a large AAVE position built through Galaxy Digital's over-the-counter (OTC) desk. The firm now appears to be selling. A $73.

Multicoin's DeFi Disaster: Firm Spotted Dumping AAVE After Brutal 55% Drawdown

Ether withdrawals are expected to resume within 24 hours for KelpDAO users after a coordinated burn of the attacker's rsETH tokens on Arbitrum successfully neutralized the exploit's impact.

Ether Withdrawals to Resume Following KelpDAO and Aave's Coordinated Token Burn

Kelp was exploited on April 18 for $292 million from attackers suspected to be part of North Korea's Lazarus Group.

Kelp DAO, Aave to resume rsETH operations as recovery from $292 million exploit progresses

Arbitrum

Arbitrum delegates begin the binding governance process to transfer disputed exploit funds to Aave, while North Korean terrorism creditors continue fighting for ownership in Manhattan court

Aave launches binding Arbitrum vote to move $71 million in disputed ETH

The order shields anyone who votes on the transfer from being held in violation of the freeze, though the ultimate fate of the funds remains unclear.

Arbitrum's $71 million in ETH cleared for Aave transfer as North Korea terrorism creditors retain legal claim

A U.S. federal judge has authorized the transfer of approximately 30,765 ETH, worth roughly $71 million, to an Aave-controlled wallet, clearing the final legal obstacle in decentralized finance's most complex recovery effort to date.

Judge Clears $71M ETH Transfer to Aave as rsETH Recovery Enters Final Phase

Judge Margaret Garnett allowed frozen exploit funds on Arbitrum to move to Aave, but the legal freeze follows the assets as terrorism plaintiffs continue their claim.

Judge clears path for Aave to move $71 million in ETH linked to North Korea hack

The lending giant is expanding its asset listing criteria beyond financial risk to include cybersecurity and architecture, and wants the rest of DeFi to follow.

Aave to overhaul collateral and listing standards after KelpDAO exploit

Aave required a governance process to manipulate its rsETH oracle price to generate a deficit in the attacker's fraudulent position.

Aave liquidates Kelp DAO attacker's remaining rsETH positions

On May 4, decentralized finance protocol Aave filed an emergency motion to lift a restraining notice that has frozen $71 million in recovered ethereum. Key Takeaways: Aave filed a May 4 motion to vacate a court order freezing $71 million in ETH recovered from a recent exploit.

Aave Challenges $71M Freeze, Seeking Fast Ruling to Restart Restitution for Users

In a 30-page response filed Tuesday, attorneys for victims of three North Korea terrorism cases reframed the April 18 Aave hack as fraud rather than theft — a distinction that could give the attackers legal title to the borrowed crypto.

North Korea terror victims escalate fight to seize $71 million from Aave hack

The filing challenges a New York restraining notice that froze ETH on Arbitrum after the rsETH exploit, with Aave arguing the funds belong to users, not North Korea judgment creditors

DeFi lender Aave asks court to block $71 million crypto seizure tied to North Korea claims

A federal case over frozen crypto could determine whether DeFi recovery funds can be seized to satisfy unrelated judgments.

Aave Fights to Unfreeze $71 Million as Kelp DAO Hack Spills Into Court

Aave LLC filed an emergency motion in federal court seeking to lift an order that froze ether tied to last month's Kelp DAO exploit.

Aave fights court-ordered $73 million ETH freeze, argues ‘a thief does not own what he steals'

Major DeFi protocols outlined technical steps to eliminate bad debt and restore full backing for exploited rsETH tokens.

Aave, Compound Unveil Technical Plan to Address Fallout From $290M Kelp DAO Hack

DeFi United, a coalition of multiple blockchain projects and crypto ecosystem individuals, has laid out a detailed plan to restore the backing of rsETH after this month's Kelp DAO hack sent shockwaves through lending markets.

A crypto coalition releases technical proposal to save Aave users from a massive token exploit

Aave founder Stani Kulechov published a technical implementation plan on Tuesday to restore rsETH backing across affected protocols, with execution sequences set to begin within days. Key Takeaways: The recovery runs two parallel tracks, i.e., restoring rsETH's nominal 1.07 ETH backing ratio through tranched ETH deposits, and clearing eight Aave positions.

Aave Releases Technical Plan to Restore rsETH Backing as Defi United's Coalition Expands

The response to the DeFi recovery fund has quickly extended beyond Aave, and in some cases began with direct outreach.

News for Aave Crypto (AAVE)