Aave overhauls standards after KelpDAO exploit

Aave plans to significantly revise its collateral and listing standards following the recent KelpDAO exploit, which resulted in hundreds of millions in bad debt. The lending giant will now evaluate potential assets based on cybersecurity and architectural integrity, moving beyond solely financial risk assessments. This proactive approach aims to establish new industry benchmarks for decentralized finance protocols. The changes were spurred by an attacker who minted unbacked tokens and used them as collateral, demonstrating the need for more comprehensive risk frameworks across DeFi.