DeFi pawnshop business nearly collapsed due to a single receipt


【Plain Language Guide】On April 18th, DeFi was hit hard by "bad collateral." The attacker exploited a LayerZero vulnerability to steal 116.5k rsETH, then deposited it into Aave to borrow about $193 million worth of WETH and wstETH, causing liquidity to dry up in multiple Aave markets, and depositors unable to withdraw.
Aave contracts were not hacked, but due to the acceptance of invalid collateral, it faced a crisis, exposing DeFi composability risks. Multiple parties are urgently providing rescue. The broken ETH receipt, the most expensive cost.
For details, see:
AAVE0.51%
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