Aave and Lido lose $1.7B in massive DeFi capital drop after the Binance hack
Aave and Lido reportedly lost about $1.7 billion in DeFi capital after the Binance hack, with stablecoin contraction visible before the breach. Aave temporarily froze activity, showing that collateralized loans can coexist with a shortage of withdrawal liquidity. Traders should watch for further outflows and liquidity stress across lending protocols.