The Kelp DAO bridge failed in one transaction. The cascade on Aave took 46 minutes. WETH suppliers who detected the utilization spike early still had a window to withdraw. Those who found out hours later could not move at all. The bridge failure is a security story. What happened to Aave over the next 46 minutes is a risk management story. They require different responses. Our latest piece maps where the institutional monitoring gap shows up in practice: forced liquidations, borrow rate spikes, LP composition drift, staking risk, and the systemic signals that large liquidation events send to the whole market.

Update on Arbitrum DAO proposal: On May 1, plaintiff-judgment creditors in an unrelated matter served a restraining notice on Arbitrum DAO targeting the ETH immobilized after the rsETH incident. A few days later, Aave LLC filed an emergency motion to vacate. On May 8, the court modified the restraining notice to permit an onchain Arbitrum vote and transfer of the immobilized ETH to Aave LLC. The restraining notice attaches to Aave LLC upon transfer. The amended Constitutional AIP preserves the recovery intent approved by Arbitrum DAO, and the ETH remains directed toward the rsETH recovery. Aave LLC will comply with all court obligations as proceedings continue.

Regarding the recent Kelp DAO exploit: Doppler Vaults remain fully unaffected and operating as intended. Our yield strategy does not rely on external DeFi protocols (other than T-bill–backed RWA exposure) and involves no looping, eliminating risks from third-party exploits.

The recent DAO vote has wrapped up, and it has raised important questions about the relationship between Aave Labs and $AAVE token holders. This is a productive discussion that’s essential for the long-term health of Aave. While it's been a bit hectic, debate and disagreement are features of decentralized governance. I want to state clearly: I am committed to making the economic alignment between Aave Labs and $AAVE token holders more clear. We haven't done a great job explaining this and will do so going forward. Another thing that’s gotten lost in this conversation is that the DAO has earned $140M this year, more than the past three years combined, and $AAVE token holders have control over this treasury. In the future, we'll be more explicit about how products built by Aave Labs create value for the DAO and $AAVE token holders. I also want to address my recent $15 million purchase of $AAVE. These tokens were not used to vote on the recent proposal and that was never my intention. This is my life's work, and I am putting my own capital behind my conviction. Lastly, the Aave ecosystem is large enough for many service providers to succeed, and we will continue to support and collaborate with teams building on the protocol. I am confident that by working together, we will build a stronger and more aligned future. $AAVE will win.

It seems the 0x1f4c_Kelp DAO Exploiter on ethereum is being liquidated (w/ ~$123m debt) in @aave Here is the related tx: The arbitrum position is also liquidated:

🇭🇰 The Scaling Summit HK 2026 | Official Recap Host: @499_DAO × City University of Hong Kong Co-host: @0G_labs × OpenSchool x IDM of CityU Special Partner: @BAI_AGI x @hetu_protocol From Models → Systems. From Tools → Autonomous Intelligence. "The Scaling Summit" has successfully concluded in Hong Kong. Together with top system architects and global academic networks, we witnessed the paradigm shift of AI moving from simple tools to autonomous economic entities. Watch the recap video to revisit the deep-dive discussions on the lifecycle of on-chain AI Agents, computing breakthroughs, real-world PayFi infrastructure, and DeSci. The autonomous era is here. 🔗 Join the 499 DAO community to build the future: Big thanks to our Partners: @Googlecloud, @PanteraCapital, @HashKey_Capita, @BNBCHAIN, @ton_blockchain, @virtuals_io, @1inch, @animocabrands, @AvaLabs, @SentientAGI, @flock_io, @AEON_Community , @Web3LabsClub @GoKiteAI, @monad, @InterlaceMoney, @letsburnlab , @POSX_Official , @avinasilabs, @DFG__Official, @JSquare_co, @SvpChain, @2u2ai, @OfficialSUNio, @DeFi_JUST, @BitTorrent, @WinkLink_Oracle

🇭🇰 The Scaling Summit HK 2026 | Co-hosts Host: @499_DAO × City University of Hong Kong Co-host: @0G_labs × OpenSchool x IDM of CityU Special Partner: @BAI_AGI x @hetu_protoco A huge thank you to our Co-host @0G_labs for their incredible support! Together with @499DAO, we’ve built a comprehensive loop of interaction that bridges infrastructure and innovation. 0G Co-founder Michael (@michaelh_0g) shared visionary insights during our session on "The Hyper-Scale Pipeline," discussing the essential decentralized infrastructure needed to support the massive scale of future AI agents. Beyond the stage, the 0G team led a focused closed-door workshop with 30 core developers, detailing how to build on their network and highlighting the 0G Grant Program to empower early-stage builders. Furthermore, 0G Head of APAC Jt (@Jtsong2) served as a key judge for our Demo Day, evaluating 8 exceptional AI projects and helping select the top 3 winners. From high-level strategy to hands-on developer support, we are grateful for 0G’s deep commitment to the ecosystem. We look forward to a long and successful partnership between 499 and 0G! #Web3# #AI# #0GLabs# #HouseofAI#

🇭🇰AI Agent Demo Day | Top 3 Winners Host: @499_DAO × City University of Hong Kong Co-host: @0G_labs × OpenSchool x IDM of CityU Special Partner: @BAI_AGI x @hetu_protocol Top 3 projects selected: 🥇 DealAgent 🥈 Syndicate 🥉 MemExchange From commerce agents to multi-agent decision systems and knowledge networks — this is what real AI systems look like in action. More than demos. These are systems being built. 🥇 DealAgent — From Chat to Commerce An ERP-native AI agent enabling commerce workflows without traditional frontends. Reimagining transactions through conversational interfaces. 🥈 Syndicate — Multi-agent trading system A crypto trading system leveraging debate, self-critique, and causal reasoning. Moving beyond signal aggregation to structured decision-making. 🥉 MemExchange @youbetdao — Knowledge exchange for agents A decentralized protocol for agents to discover, trade, and reuse knowledge. Allowing agents to build on existing expertise.