Crypto World

How Maker’s Spark and USDC are winning the $10 billion Aave breakup

Published

2 hours ago

22 April 2026

How Maker’s Spark and USDC are winning the $10 billion Aave breakup

Over $10 billion has exited Aave after the Kelp DAO exploit, but the capital hasn’t all gone to one place.

After the roughly $292 million exploit broke the cross-chain backing of rsETH, users have spread capital across safer, simpler venues rather than rotating into a direct replacement. Aave’s total value locked has fallen about 40%, according to DeFiLlama data, as impaired collateral triggered market freezes, stalled liquidations, and forced deleveraging, pushing users to withdraw or close positions.

Some of that capital has moved into Maker-linked Spark, which has emerged as the clearest relative winner. Its TVL has risen around 10% as users rotate toward infrastructure backed by Sky’s $6.5 Billion stablecoin reserves, favoring tighter risk controls over open-ended lending markets exposed to complex collateral.

Elsewhere, large liquid staking providers like Lido have held relatively steady. That stability suggests users are not abandoning ETH exposure, but stripping out layers of risk tied to restaking, rehypothecation and cross-chain bridges.

A third pocket of inflows is showing up in real-world asset protocols such as Centrifuge and Spiko, which both offer exposure to tokenized assets like T-bills and bonds.

At the same time, a significant share of funds has moved into stablecoins, particularly USDC, as users step out of risk and wait on the sidelines rather than immediately redeploying capital.

Not all of Aave’s decline reflects capital rotation. Part of the drop comes from loans being repaid and positions unwound, mechanically shrinking TVL without a new destination.

The result is a fragmented market response. Capital is flowing toward simplicity, controlled risk and even cash, suggesting that after Kelp, confidence in shared collateral layers has weakened rather than shifted elsewhere.

Source link

Crypto World

DeFi Platform Volo Hit by $3.5M Vault Attack, Begins Recovery Efforts

Published

30 seconds ago

22 April 2026

NewsAdmin

DeFi Platform Volo Hit by $3.5M Vault Attack, Begins Recovery Efforts

Decentralized finance (DeFi) protocol Volo has disclosed a security breach that resulted in the loss of approximately $3.5 million in digital assets, marking the latest incident in a series of exploits targeting DeFi platforms.

In a Wednesday post on X, the team said the attack affected select vaults and involved assets including Wrapped Bitcoin (WBTC), Matrixdock Gold XAUm and USDC (USDC). “We detected the attack, immediately notified the Sui Foundation and ecosystem partners to contain the damage, and froze the vaults to prevent any further exposure,” the team wrote.

The protocol added that around $28 million in total value locked across other vaults is safe, with the exploit limited to three isolated vaults and no shared vulnerability identified. It also revealed plans to absorb the losses rather than pass them on to users, though details of any remediation plan have yet to be finalized.

Volo is a liquid staking DeFi platform on the Sui blockchain, allowing users to stake their Sui (SUI) tokens and receive voloSUI (VSUI) in return. DeFi is already on edge, as the exploit comes as another liquid restaking protocol, Kelp, was hacked for approximately $293 million over the weekend, which has had a ripple effect across the broader ecosystem.

Volo freezes a portion of lost funds

In two separate updates, Volo said it has frozen or blocked roughly $2 million of the stolen funds so far. In the first update, the protocol said that roughly $500,000 linked to the breach has already been frozen. In a later update, the team claimed it had successfully blocked an attempt by the attacker to bridge 19.6 WBTC, effectively removing those funds from the hacker’s control.

“We are now working with ecosystem partners to determine the best path to return these funds to Volo,” the protocol wrote.

Crypto hacks claim $17 billion in 10 years

As Cointelegraph reported, more than $17 billion has been stolen in crypto over the past decade, with private key compromises identified as one of the major contributing attack vectors, according to DefiLlama.

Roughly 22.3% of incidents are linked to brute-force key compromises, 18.2% to unknown methods and 10% to phishing attacks on multi-signature wallets. The findings show that many of the biggest losses stem from wallet security and user-side weaknesses rather than protocol bugs.

Magazine: 53 DeFi projects infiltrated, 50M NEO tokens could be ‘given back’: Asia Express