Written by: Jocy, IOSG
$230 million USD in bad debt remains unresolved. Aave Collector holds over $200 million in liquid assets, and LayerZero just completed a $120 million funding round—both are fully capable of covering the losses. Aave has already lost $8.45 billion in TVL in less than two days, with the entire DeFi sector evaporating $13.2 billion. For every additional day of delay, this number continues to grow.
Yet, no party has responded regarding who is responsible for the stolen assets, and no one has made a statement. They are playing games with each other, while the entire DeFi ecosystem bleeds.
Where has the 𝗗𝗲𝗙𝗶 spirit of 𝟮𝟬𝟮𝟬 gone?
On March 12, 2020, ETH dropped to $80, on-chain liquidation auctions saw prices plummet to zero due to failed bids, and MakerDAO faced systemic collapse. At that time, the MKR Foundation stepped forward, proposing to auction MKR to buy back ETH and cover the bad debt, with major community participants joining the bidding.
That time, the Ethereum community and the DeFi spirit made everyone proud—in the face of crisis, someone took responsibility, someone took action.
And today? Silence.
Many of my friends are not just withdrawing funds from Aave—they are pulling funds from Spark, and even other DeFi protocols. They are not panicking; they are voting with their feet: if no one in this ecosystem is willing to step up to resolve a $260 million issue, why should they keep their money here?
Once these funds leave, they will never return.
In the past, Aave has experienced many governance crises, with many in the community holding different opinions and disagreements never ceasing. But today is not the time to debate governance philosophy. Looking back at the prosperity of DeFi Summer, looking back at this decentralized financial world we built together—we have come a long way. The future of DeFi should not be destroyed by silence.
This is not just Aave's problem. Spark, MakerDAO, and all DeFi protocols on Ethereum should participate in coordination. Trust collapse does not distinguish between protocols. If this is not handled well, the entire DeFi TVL will be repriced, and everyone will suffer.
Time is extremely precious.
Aave could first commit to covering the losses and then take time to coordinate a specific plan—this would stop the bank run. If the project parties continue to remain silent, @VitalikButerin
should step in to coordinate—no need to pay, just a statement saying "this matter will be properly resolved" is enough.
For every additional hour of silence, more funds are permanently lost.
Calling on @StaniKulechov, @VitalikButerin, @AaveDAO, @KelpDAO, @LayerZero_Core, @RuneKek
to communicate publicly as soon as possible and give the market a clear signal.
Silence is the worst option.
