AAVE is having a rough season and got hit again... Today, KelpDAO's rsETH was stolen, which might leave AAVE with nearly $300 million 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 A massive amount of funds is being withdrawn from AAVE in panic, but the demand for borrowing still exists.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 skyrocketed to 52%, showing that these demands are quickly shifting to Spark, which the market perceives as safer. Spark's pools are almost fully borrowed out now. Spark, known for being conservative with collateral, had already delisted rsETH. It seems Spark has managed to avoid the oracle failures and hacker-related bad debt incidents that AAVE has faced recently. Actually, Spark's main business isn't lending—it’s providing a liquidity layer to third parties based on USDS's unlimited ammo. But judging by this trend, Spark's lending business might surpass the giant AAVE. The key difference is that AAVE supports collateralized lending for up to 50 assets, including many long-tail assets and altcoins, while Spark only supports 7 assets for now. The gap in risk exposure between the two is pretty obvious.