Curve Founder: KelpDAO Exploit Triggers Aave Losses, Exposing Non-Segregated Lending Risk

BlockBeats News, April 19, Curve founder Michael Egorov posted, saying, "Hope Aave can address this issue. Kelp DAO suffered a loss of about $292 million in a hack, leading to Aave experiencing a default, precisely the risk brought about by the widely adopted 'non-segregated lending' model. This model has good scalability but higher risk, so risk management is crucial (Aave has always performed well in this regard)."

One approach is to adopt a fully segregated model like Curve Finance's pool, while another is to use a hybrid model (which is more complex but feasible). However, the market has not yet fully understood the benefits of these solutions. Aave's v4 hub and spoke model may be a step towards a semi-segregated, more secure direction."