Aave will comprehensively reform its collateral structure and adjust its asset listing standards to address the KelpDAO vulnerability risk.
TechFlame
2026-05-07 14:31
TechFlame2026-05-07 14:31
English
TechFlame News, according to CoinDesk, Aave Labs is set to overhaul its asset listing and collateral risk management rules. In addition to the existing price and volatility assessments, it will introduce new checks on compatibility, cybersecurity, and underlying architecture, along with publishing minimum standard guidelines for asset issuers.
This move stems from the April attack on the KelpDAO cross-chain bridge, where hackers minted approximately $293 million in unbacked rsETH and used it as collateral on Aave to borrow real wETH, resulting in hundreds of millions of dollars in bad debt for the protocol. Aave will also shift from a single-pool perspective to studying the systemic interconnections between different DeFi protocols in order to reduce cross-protocol risks, and is calling on other DeFi projects to adopt similar standards.