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DeFi

All Stablecoin Beat articles tagged “DeFi”.

Abstract visualization of DeFi lending stress with liquidity pools at maximum utilization and cross-chain collateral failure cascading through stablecoin markets
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Aave Bad Debt Crisis: How the Kelp DAO Exploit Hit Stablecoin Liquidity
Apr 28, 2026 ·22 min read
The Kelp DAO exploit exposed a structural weakness in DeFi lending: stablecoin liquidity is not only a function of issuer reserves but of collateral quality, pool utilization, and cross-chain infrastructure. When attackers deposited unbacked rsETH into Aave and borrowed against it, stablecoin markets reached 100% utilization. The result was a nine-figure bad debt crisis managed through governance, not code.