Aave Pitches Two Solutions to Resolve Kelp DAO Hack Dilemma
- Posted on April 21, 2026
- By Cointelegraph
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- 1 min read
In brief
Following the Kelp DAO security breach, Aave's risk management team at LlamaRisk has presented two distinct pathways to mitigate potential bad debt exposure within the protocol. The analysis evaluates different scenarios regarding how losses from the exploit could propagate through Aave's lending ecosystem, providing stakeholders with a comprehensive framework for understanding systemic risk implications and recovery strategies.
Aave Pitches Two Solutions to Resolve Kelp DAO Hack Dilemma
Aave’s risk manager, LlamaRisk, has outlined two scenarios on how bad debt from the Kelp DAO exploit could impact the ecosystem.
