Aave faces 'serious trouble' as all its core markets hit 100% utilization. What this means.
CoinDesk
Aave’s lending markets have reached 100% utilization, effectively trapping billions in assets and disabling the protocol's ability to process withdrawals or liquidations.Summary
Aave is facing a severe crisis after its core lending markets reached 100% utilization following a $292 million exploit of the Kelp DAO rsETH bridge. This liquidity exhaustion has frozen approximately $5 billion in USDT and USDC, preventing users from withdrawing funds and halting the protocol's liquidation mechanisms. Security experts warn that without the ability to process liquidations, the platform cannot defend itself against accumulating bad debt, creating a catastrophic systemic failure triggered by the interconnected nature of DeFi protocols.
(Source：CoinDesk)