The aftermath of the KelpDAO hack, which locked every stablecoin exit on Aave, Aave simultaneously, has caused a $300 million borrowing surge in the first 24 hours following the attack. This increase in borrowing is not indicative of demand, but a desperate move for liquidity. With stablecoin pools maxed out, depositors are borrowing against their own funds to access liquidity. The system operates on the assumption that there is always enough liquidity for lenders to withdraw deposits and borrowers to unwind their positions when needed. However, this assumption of self-correcting, led to a breakdown in the system. Aave is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrencies without intermediaries. The recent attack on Aa led to an increase in the borrowing surge, with large funds worth materializing from Aave's liquidity pools within hours.