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The exploit, which did not compromise Aave’s own contracts, left roughly $196 million in Aave-specific bad debt concentrated in the dominant rsETH-wrapped ether pair on Ethereum.
Aave’s Umbrella reserve may not fully cover the deficit, raising the prospect that stkAAVE holders could absorb losses and underscoring systemic risks from liquid restaking tokens across DeFi.
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At the same time, about $200,000,000 in short positions were liquidated in the past 24 hours.
Despite the rebound, Bitcoin remains down roughly 11% year-to-date.
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Admiral Samuel Paparo said the military sees Bitcoin mainly as a tool to help secure networks. He also praised stablecoin legislation for helping ensure the global dominance of the US dollar.
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