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Analysts have proposed two potential solutions for the challenges facing Aave and Kelp., 2026/04/21 13:50:49
LlamaRisk, a risk management service provider for the cryptocurrency lending platform Aave, has outlined two potential scenarios regarding the situation with unsecured debts that arose following the $293 million hack of the Kelp bridge.
The attack also impacted the Aave platform, where hackers secured a loan exceeding $200 million using the stolen tokens from Kelp as collateral. According to the first scenario proposed by LlamaRisk analysts, the losses will be distributed among all holders of rsETH tokens on the Ethereum mainnet and layer two solutions. In this case, the unsecured debt on Aave would amount to approximately $123.7 million, and the value of rsETH relative to Ether could decline by up to 15% from its peg.
In this scenario, the losses would be more evenly spread across all networks, experts believe. The token wETH would bear the brunt of the absolute losses, but Aave would be able to utilize its internal security model to cover the losses in wETH. Notably, 18,922 aWETH (Aave Wrapped ETH) tokens valued at nearly $43.7 million have already begun to be unfrozen on the platform, as noted by risk specialists.
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In the second scenario, the entire liquidity shortfall would be transferred to layer two networks, such as Arbitrum and Mantle. In this case, the volume of bad debt would significantly increase, reaching $230.1 million, according to blockchain analysts.
Aave’s treasury holds around $181 million—these funds could be utilized to address the potential liquidity shortfall, but experts from LlamaRisk assert that this amount would still be insufficient. Analysts believe that the Kelp hack could trigger a liquidity shortage, exacerbated by a mass withdrawal of assets from DeFi platforms. Recent data from Lookonchain indicates that the current value of assets on Aave has decreased by $9.94 billion over three days, bringing it down to $16.432 billion.
On Saturday, April 18, hackers stole 116,500 rsETH (Restaked ETH) tokens valued at the Kelp DAO cross-chain bridge based on LayerZero. The stolen assets were used as collateral on the Aave V3 platform to secure a loan in wrapped Ether (wETH).
