#tvl-collapse News & Analysis

$6,280,000,000 Abruptly Exits Ethereum-Based Lending Platform As Cross-Chain Hack Triggers Mass Withdrawals

Aave's total value locked (TVL) dropped by $6.28 billion in under 48 hours following a cross-chain bridge hack on KelpDAO's LayerZero protocol, which resulted in approximately $292 million in compromised rsETH tokens. The security breach triggered a cascade of mass withdrawals from the major DeFi lending platform, exposing vulnerabilities in cross-chain infrastructure.