Summary and Trends: The rotation to other lending/yield protocols saw a total scale increase, primarily concentrated in Spark with an incremental $600-800M (this was the most notable single inflow during the event). Other protocols overall did not experience equivalent significant net inflows, and the TVL of most top lending protocols generally declined (double-digit percentages). Most of the outflows from Aave (especially stablecoins and ETH) did not remain entirely within the DeFi lending space but were instead dispersed for hedging or waiting for liquidity to recover. Some users exited indirectly through borrowing, sold aWETH at a discount on DEXs, or transferred directly to CEXs. The event is still in recovery. Withdrawal delays occurred in some Aave pools due to high utilization rates; Spark and others benefited from the "hedging rotation," but the inflows might also partially be short-term behavior. Arb's "redemption" sparked another hot discussion in the community—there’s no white knight savior, and the narrative of DeFi is becoming increasingly "messy." #DeFi #Crypto #Aave #Spark