Aave records $6 billion TVL drop as Kelp hack exposes structural risk at DeFi lender
By Shaurya Malwa
Published on April 19, 2026.
Aave, the largest lending protocol in DeFi, saw a $6.6 billion drop in its value locked from $26.4 billion on April 18 to nearly $20 billion in U.S. morning hours on Sunday. The theft of 116,500 tokens from Kelp's bridge, which transfers tokens between different networks, caused this structural risk to Aave. The AAVE token fell 16% to $92 and daily fees rose to $1.99 million as liquidations occurred throughout the weekend. The attack targeted the exact collateral-to-WETH pair that Aave uses. Aave's loan book spans 22 chains, with Ethereum alone holding $14.24 billion of the $17.82 billion outstanding borrows.
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