DeFi went through a serious stress moment, and the reaction was instant.
After the Kelp exploit, Aave saw a sharp drop in TVL as capital moved out quickly.
What made it worse was how the attack flowed through the system.
A compromised asset got used as collateral, and suddenly the issue wasn’t isolated anymore.
Liquidity tightened, withdrawals slowed, and confidence took a hit.
This is the tradeoff of deep composability.
It makes DeFi powerful, but also fragile under pressure.
Does this lead to stronger risk frameworks?


From X
Disclaimer: The above content reflects only the author's opinion and does not represent any stance of CoinNX, nor does it constitute any investment advice related to CoinNX.

