Flight to safety: How Maker’s Spark and USDC are winning the $10 billion Aave breakup
By Sam Reynolds
Published on April 22, 2026.
Over $10 billion has been withdrawn from Aave following the Kelp DAO incident, which broke the cross-chain backing of anonymous. Users have spread capital across safer, simpler venues rather than directly replacing Aave. Some of this capital has been moved into Maker-linked Spark, which has seen its TVL rise by around 10% as users rotate towards infrastructure backed by Sky's $6.5 billion stablecoin reserves. However, large liquid staking providers like Lido have remained steady, suggesting users are not abandoning ETH exposure but removing layers of risk associated with restaking, rehypothecation, and cross-Chain bridges. The total value for Aave has fallen by 40% as impaired collateral caused market freezes, stalled liquidations, and forced deleveraging.
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