Aave and Lido lose $1.7B as DeFi capital flees after Binance hack
Aave and Lido shed $1.7 billion in a broad DeFi capital withdrawal following the Binance hack, with stablecoin contraction already visible before the breach. Aave's temporary freeze highlighted how collateralized lending can coexist with scarce withdrawal liquidity. Traders should watch DeFi total value locked and stablecoin supply for signs of further deleveraging.