Aave's Rescue Plan Leads to Price Rebound, DeFi Industry Needs Enhanced Risk Management Awareness

On April 25, the DeFi United ecological rescue plan led by Aave has raised nearly 70,000 ETH, seemingly providing a ‘proper’ solution to the bad debts caused by the KelpDAO hacking incident. As a result of this positive news, the price of AAVE has stabilized in recent days, reaching $95.93 at the time of publication, rebounding over 10% from the low of $86 following the hacking incident. It is worth noting that this single-point hacking event has triggered systemic risks across the entire DeFi protocol, fully exposing the vulnerabilities of the DeFi industry. Although the DeFi United rescue plan aims to resolve this bad debt through a ‘shared responsibility’ donation model, a one-time rescue plan cannot address the future security risks of the industry; nor can it quickly restore people’s confidence in DeFi or resolve doubts about the insufficient risk management awareness among leading practitioners.