Apr 19, 2026 8:02 PM

Aave's own governance, not just an external hack, turned a $292 million bridge exploit into a $200 million bad debt crisis by raising rsETH's loan-to-value to 93%. This decision, compressing the safety buffer, amplified the damage and left the protocol holding the bag. Does this expose a critical flaw in how "battle-tested" DeFi protocols manage risk, or was it an unavoidable consequence?
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