Aave rescue plan leads to a rebound in token prices; long-term success of the DeFi industry still requires enhanced risk management awareness

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BlockBeats News, April 25 — The DeFi United ecosystem rescue plan initiated and led by Aave has currently raised nearly 70,000 ETH. The bad debt impact caused by the KelpDAO hacker incident appears likely to be “properly” resolved. Benefiting from this positive news, the AAVE token price has stopped falling and stabilized in recent days. As of press time, AAVE is trading at $95.93, up more than 10% from the $86 low after the hacker incident.

It is worth pondering that this single-point hacker incident has triggered systemic risk for the entire DeFi protocol, fully exposing the industry’s fragility. Although the DeFi United rescue plan will resolve this bad debt in a “shared responsibility” donation form, a one-time rescue cannot eliminate the industry’s future security risks; nor can it, in a short period of time, repair the wavering confidence people have in DeFi or address doubts about top practitioners’ insufficient risk management awareness.

AAVE0.03%
ETH0.19%
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