Kava Lend Exploit Exposes a Dangerous Gap in DeFi Collateral Accounting

An exploit at Kava Lend has drained roughly 55 million KAVA tokens from the lending protocol, highlighting a class of DeFi vulnerability that can remain dormant until unusual market conditions make it dangerous. The incident did not involve an attacker magically creating unlimited tokens. Instead, on-chain analysis indicates that a tiny balance in a largely inactive stablecoin market caused the protocol to overstate the value of collateral, opening the door to repeated borrowing.
The attack and