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Aave Nears Recovery from Kelp DAO Hack

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Galaxy Digital analyst Thaddeus Pinakiewicz reports that Aave is within 10% of fully recovering the bad debt incurred from the Kelp DAO hack. The incident, which affected the lending protocol on Ethereum and Arbitrum, led to significant liquidations of the hacker's rsETH positions. Aave's resilience in absorbing these losses underscores the robustness of its risk management mechanisms, as the protocol has methodically worked to restore its balance sheet. This recovery trajectory signals a healthy rebound and reinforces confidence in Aave's ability to handle adverse events. The market's response has been measured, with Aave's native token showing stability amid broader market fluctuations.

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