The Solana Foundation, the nonprofit that manages the development of the Solana blockchain, has deployed some of its Tether treasury into Aave for the first time to support recovery efforts after the KelpDAO exploit, according to Lily Liu, who chairs the Foundation.
We use our cash flow to support the growth of Solana’s economy. It is, by definition, DeFi.
But economies do not exist in isolation. For Solana to be healthy, the entire challenge must be healthy.
We love competition. We compete hard. But if we zoom out, we’re all heading towards…
– 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 created 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 approximately $190 million in real assets.
Although Aave’s protocol worked as expected, the incident created a significant risk of bad debts due to invalid collateral.
