AAVE’s is attacked by Mango Markets hacker
Aave suffered minimal losses, with no impact on the price of the AAVE token

The cryptocurrency market has been taking a beating lately and many projects are struggling due to low liquidity. Attempted abuse Aaf, which would have been a major setback for the crypto space. Particularly the Defi sector. Aave claimed to have suffered only minor damage as a result of the exploit’s failure.

Read Aave’s [AAVE] Price prediction 2023-2024

How the attempted abuse went

Aave responded on Twitter on Nov. 22 acknowledge that the Curve [CRV] liquidity pool witnessed a liquidation round. A trader borrowed 40 million CRV tokens from decentralized lending site Aave, then moved them to OKEx, according to tweets from look at chain.

The dramatic move appeared to be part of a plot to liquidate the tokens, lower CRV’s price and profit from the millions of dollars in short positions on the token. This leaves Aave with a mountain of bad debts.

This current action against Aave was started by a dealer named Eisenberg, the same dealer who was in charge of the Mango markets hack. This time, however, he seemed to have failed. His loan was eventually liquidated, but not before Aave suffered some consequences.

Not a big loss… But preventable

Aave stated in the tweet about the exploit that all loans were subject to liquidation proceedings. However, Aave took a hit because 2.64 million CRV – or about $1.6 million – had not yet been paid.

The loss was insignificant given the size of the Total Value Locked (TVL). The TVL visible at the time of writing was according to data from Defillama.

Source: DeFiLlama

Perhaps the loss could have been avoided. Eisenberg, the hacker, described in detail how he was able to exploit Aave’s alleged vulnerability weeks ago.

Furthermore, a successful exploit could have been detrimental to Aave and the DeFi space, which has so far managed to stay out of the crypto industry’s current storm.

The municipality has one proposal in an effort to prevent another incident and close the gaps. The proposal’s amendment of the liquidation threshold for assets with higher values ​​to 80% was the standout feature.

Not a negative in sight yet

Looking at AAVE’s price movement over a daily period showed no evidence of a negative impact. It had gained about 1% at the time of writing and was trading at about $57.

However, after a significant drop early in the month, AAVE’s price movement was essentially sideways. Since it started to decline, it’s down more than 40%.

Source: TradingView

The asset’s recent trend shown on the chart was also confirmed by the Relative Strength Index (RSI). The bear trend that indicated the price movement was confirmed by the RSI line, which turned out to be below 30.





This post AAVE endures this exploit with minor injuries, but what explains the 40% drop

was published first on https://ambcrypto.com/aave-endures-this-exploit-with-minor-injuries-but-what-explains-the-40-drop/

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