Overview
- A wallet tied to HTX Recovery executed five transactions in about five minutes after Aave halted the rsETH/wrsETH market, withdrawing $274 million in USDT.
- Reporting attributes the initial halt to an exploit involving Kelp DAO and says Aave moved to a security lockdown across several networks.
- Aave then curtailed withdrawals more broadly, pushing large holders to use decentralized exchanges for exits that carried slippage and realized losses.
- One tracked whale sold deposit tokens to reclaim 17,400 ETH and lost about 310 ETH in the process, showing the real cost of forced liquidity moves.
- Aave has begun a limited restart by unfrozing WETH only on its Ethereum Core V3 market with loan-to-value set to zero, while many other reserves remain locked.