AAVE is having a rough season and got hit again... Today, KelpDAO's reETH was stolen, potentially leaving AAVE with nearly $300M in bad debt. A massive amount of funds is being withdrawn from AAVE in panic, but the demand for borrowing still exists. Meanwhile, Spark's ETH deposit rate has skyrocketed to 52%, indicating that this demand is quickly shifting to Spark, which the market perceives as safer. Spark's pools are almost completely borrowed out. Spark, known for being very conservative with collateral, had already delisted reETH. It seems Spark has managed to dodge the recent oracle failures and hacker-induced bad debts that AAVE has faced. Interestingly, Spark's main business isn't even lending—it's providing a liquidity layer to third parties based on USDS's "infinite ammo." But at this rate, it feels like their lending business might actually surpass the giant AAVE.