Aave Faces $290M Exploit, Implements New Risk Framework

In April 2026, a $292 million exploit on KelpDAO’s LayerZero bridge led to a significant liquidity crisis for Aave, resulting in $8.45 billion withdrawn in just 48 hours. This event marked the largest liquidity crisis in DeFi history, prompting Aave to introduce a new risk management framework. Aave founder Stani Kulechov announced this framework on June 10, 2026, which includes four layers: Asset Risk, Bridging Risk, Automated Risk Oracles, and Monitoring. The exploit's impact forced an emergency bailout of $300 million to stabilize the situation. The new framework aims to enhance security and prevent future incidents. Aave's response reflects the growing need for robust risk management in decentralized finance.

Key Points: • Aave experienced a $292 million exploit on KelpDAO's LayerZero bridge in April 2026. • The exploit triggered a liquidity crisis, with $8.45 billion withdrawn from Aave in 48 hours. • Aave introduced a new risk management framework on June 10, 2026, to enhance security.