Aave Is Down 18% And Carrying $196M In Bad Debt, But Smart Money Is Buying Anyway

Aave is having one of the worst weeks in its history. On April 18, attackers exploited a vulnerability in KelpDAO’s rsETH bridge and deposited the stolen tokens as collateral on Aave V3, borrowing roughly $196 million in wrapped ether against assets the protocol had no reason to reject at the time. The bad debt was not caused by a flaw in Aave’s own code — but that distinction has done little to calm the market’s reaction. Related Reading: XRP Is Moving Higher While Its Order Flow Stays Negative