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The Solana Foundation, the nonprofit that stewards development of the Solana blockchain, has deployed part of its treasury in Tether into Aave for the first time to support recovery efforts post-KelpDAO exploit, according to Lily Liu, who chairs the Foundation.
We use our treasury to support the growth of the Solana economy. That is, definitionally, DeFi.
But economies don’t exist in isolation. For Solana to be healthy, all of defi has to be healthy.
We like competition. We compete hard. But if we zoom out, we’re all pushing toward…
— Lily Liu (@calilyliu) April 25, 2026
The Foundation also plans to bring Aave’s governance token to Solana this weekend.
The exploit affected Aave when attackers minted unbacked rsETH tokens by exploiting a misconfiguration in LayerZero’s verification system. These tokens were then deposited into Aave as collateral, allowing the withdrawal of roughly $190 million in real assets.
While Aave’s protocol operated as designed, the incident created significant bad debt exposure due to the invalid collateral.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
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