Aave, a leading decentralized finance (DeFi) lending protocol, saw its total value locked (TVL) plummet by approximately $6.6 billion, dropping from $26.4 billion to nearly $20 billion after a hack involving Kelp's bridge. The attackers drained 116,500 rsETH, valued at $292 million, and used it as collateral to borrow wrapped ether on Aave V3, leading to the accumulation of about $196 million in bad debt. Although Aave's contracts were not compromised, the incident raises serious concerns about the structural risks associated with liquid restaking tokens, which have become increasingly popular in DeFi. Aave's Umbrella reserve, initially thought to cover any deficits, may not be sufficient, prompting fears that holders of stkAAVE tokens could face losses. This incident underscores the fragility of the DeFi ecosystem, as the exploit highlights vulnerabilities in systems that were previously considered secure. The incident has triggered emergency freezes across multiple lending protocols, reflecting the widespread implications of the attack on the DeFi landscape.