Aave restores ether borrowing limits after $230 million exploit
Aave has restored borrowing limits for wrapped ether (WETH) across six networks following a significant exploit. The emergency restrictions were initially imposed after attackers drained approximately $230 million in ETH. With most of the unbacked tokens recovered, Aave's decision indicates a reduction in immediate systemic risk within the DeFi space.
- ▪Aave reversed emergency borrowing limits for WETH across six networks after a $230 million exploit.
- ▪The exploit involved a misconfiguration related to the rsETH token, which allowed attackers to mint unbacked tokens.
- ▪Over 95 percent of the unbacked rsETH has been recovered, signaling a normalization in the DeFi lending market.
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MarketsShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailAave restores ether borrowing limits after $230 million exploitThe DeFi lending protocol reversed restrictions imposed after April’s $292 million exploit, restoring borrowing capacity across six networks as contagion fears ease.By Sam Reynolds|Edited by Shaurya Malwa May 18, 2026, 7:05 a.m. 2 min readMake preferred on (Brian Jackson/Unsplash)What to know: Aave has restored normal loan-to-value ratios for wrapped ether (WETH) across six Aave V3 networks, reversing emergency limits imposed after April’s rsETH exploit.The rsETH incident, tied to a LayerZero bridging misconfiguration, allowed attackers to mint about $292 million in unbacked rsETH and drain roughly $230 million in ETH from Aave before large-scale…
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