A single on-chain wallet transferred $150 million in USDT from the Aave lending protocol to the Spark USDT Savings product, known as spUSDT. This move follows a broader trend of capital shifting away from Aave, which began after the KelpDAO rsETH exploit on April 18, 2026.
The exploit resulted in approximately $195 million in bad debt for Aave. Following the incident, the protocol experienced estimated net outflows of $10 to $16 billion, with its total value locked dropping from about $48.5 billion to $30.7 billion within three days.
Spark became a primary beneficiary of these outflows, recording between $1 billion and $2.4 billion in net deposit inflows. The spUSDT vault previously reached over $1 billion in deposits by April 23, 2026, before declining to approximately $600 million by October 7, 2026.
The recent $150 million transfer highlights a shift in investor preference toward liquidity and risk management. While Aave utilizes a supply-and-demand rate model, Spark operates within the Sky ecosystem, focusing on rate limits and peg stability.
