Analysis: Over $5.4 billion in assets were urgently withdrawn from Aave, with Spark and other protocols absorbing lending demand.

CoinFeed reported on April 19th that, according to on-chain analyst Yu Jin, over $5.4 billion in assets were urgently withdrawn from Aave for hedging purposes after hackers borrowed a large amount of ETH by staking illegally minted rsETH on Aave. This included Justin Sun retrieving his 65,584 ETH ($154 million) on Aave. The remaining on-chain lending demand flowed into protocols like Spark: demand drove ETH deposit rates on Spark to a peak of 130%. Currently, 18% remains.