Aave survived $8.45B in withdrawals, but risk questions remain

Aave handled $8.45 billion in withdrawals without freezing funds, but the episode raised fresh questions about hidden risks in DeFi lending.

A stress test that showed both strengths and weaknesses

When large sums leave a financial system quickly, hidden weaknesses often become visible. In traditional finance, such situations often lead to emergency lending programs, withdrawal limits or government-backed bailouts.

Decentralized finance (DeFi) works differently.

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