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Solana provides USDT loans to AAVE to stabilize liquidity
CryptoWorld News reports that Liu Li, Chairwoman of the Solana Foundation, confirmed that the foundation has provided a USDT-denominated loan to AAVE to help stabilize liquidity after the KelpDAO vulnerability in April. Liu Li stated, “This is our first time lending USDT to AAVE to support their recovery efforts.” She added that the health of Solana depends on “the health of all DeFi.” At the same time, Liu Li also revealed that the foundation will introduce AAVE’s governance tokens to the Solana network this weekend. This intervention took place after the KelpDAO vulnerability on April 18, when attackers used an uncollateralized rseth as collateral to withdraw nearly $190 million to $293 million in real assets from AAVE, leading to a potential bad debt of approximately $124 million to $195 million for the protocol. AAVE founder Stani Kulechov said, “Restoring stability and protecting users are top priorities.”