DeFi's in turmoil after a $70M exploit on Curve Finance last week, causing liquidity issues for major lending platforms.
Aave, the leading money market with nearly $5B in TVL, faces soaring borrowing costs for stablecoins.
USDC's borrowing rate on Aave V2 stands at 22%, having spiked to 32% on July 31 due to stablecoin withdrawals.
USDT borrowing rate hits 18%, the highest since March, as traders seek safer options amid USDC concerns.
DAI, the third-deepest stablecoin market on Aave, is costly to borrow at 12% due to increased utilization rates.
Aave's TVL dropped 15% in a week as depositors worry about potential bad debt from the exploit fallout.
Justin Sun withdrew $40.7M of USDT from Aave, briefly spiking the interest rate to 44%.
Curve co-founder Michael Egorov's $148M in CRV tokens backing stablecoin loans adds to the lending platform's risk.
The successful attack on Curve by hackers has DeFi protocols reevaluating their exposure and safety.
Abracadabra, a lending platform, contemplates raising rates on CRV-backed loans to induce repayment.
The concerns surrounding Egorov's positions lead to debates and proposals on interest rate adjustments in Abracadabra.