In a significant security incident, over $5.4 billion in assets were withdrawn from Aave after a hacker used collateral to illegally mint rsETH and borrow a large amount of ETH. Among those withdrawing was Sun, who retrieved 65,584 ETH valued at $154 million from the platform.
As a result of the exodus, remaining on-chain lending demand shifted to protocols like Spark. This surge in demand caused ETH deposit rates on Spark to spike to as high as 130%, though they have since stabilized at 18%.
Over $5.4 Billion Withdrawn from Aave Following Security Breach
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