A cross-chain exploit involving rsETH drained US$291M, exposing weaknesses in Kelp DAO’s infrastructure and triggering a wider DeFi response. Aave froze affected markets as liquidity evaporated, with customers unable to withdraw and compelled into defensive borrowing behaviour. The incident sparked billions in outflows and renewed scrutiny of cross-chain design dangersContinue Reading

Aave DAO member tulipking has proposed a “poison capsule” plan to grab Aave Labs’ IP, branding, fairness, and previous income. The transfer follows considerations that front-end income modifications, together with the CoW Swap integration, bypassed DAO approval. The proposal underscores broader tensions over governance, income management, and the position ofContinue Reading

Aave’s upcoming V4 upgrade (Q4 2025) introduces a “hub and spoke” modular structure for lending, separating central liquidity from individual risk-profiled markets (spokes). The new design features dynamic risk settings and a “health-targeted” liquidation engine that sells only enough collateral to restore loan health, preventing mass liquidations. V4 enhances userContinue Reading

Horizon enables institutional borrowing of stablecoins secured against tokenised Treasuries and structured credit assets. Supported assets include Superstate funds, Circle’s yield products, and Centrifuge’s tokenised loan portfolios. Regulatory controls are applied at the token issuer level, ensuring compliance with institutional requirements. Aave Labs has introduced Horizon, a lending platform designedContinue Reading