I noticed that the market is reacting violently to the Kelp hack right now. Aave is losing billions of dollars in liquidity, and it's crazy to see how an issue on another protocol can cause so much cascading damage. The TVL has plummeted from $26 billion to less than $20 billion in a few hours, and the AAVE token is following the trend with about a 16 percent drop. What’s interesting is that Aave was not directly attacked, but users are panicking anyway and withdrawing their funds. This is clearly a signal that investors are becoming more cautious about systemic risks. It remains to be seen whether Aave and the protocol will stabilize quickly or if this flight continues.

AAVE1.72%
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