Aave Deposits Drop Below $30B as rsETH Incident Triggers Liquidity Strain

• Aave deposits fell from $48.5B to $29.6B after the rsETH exploit led to outflows.
• USDC utilization stayed near 100% as high rates failed to bring enough fresh liquidity to Aave.
• While Aave and Morpho lost deposits, SparkLend gained inflows as capital shifted after the incident.

Aave’s total deposits have declined following the rsETH exploit, as ongoing outflows and high utilization levels continue to change lending conditions on the protocol. Data shows deposits fell from approximately $48.5 billion before the incident to about $30.7 billion, reflecting nearly one-third of capital exiting within a short period. In the immediate aftermath, $15.1 billion left the platform in just three and a half days, showing the scale and speed of withdrawals tied to the event.

The outflows coincided with a surge in borrowing activity after 116,500 rsETH, minted through an exploi…

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