Aave released a report stating that, due to a vulnerability in the Kelp DAO bridge, the protocol could face two potential loss scenarios: if the loss is distributed across all rsETH, the loss would be approximately $123 million; if limited to Layer 2, the loss could reach up to $230 million. The vulnerability resulted in approximately $190 million in uncollateralized loans, with the exact impact depending on how Kelp DAO allocates the shortfall.
Aave Faces Potential $230M Loss Due to Kelp DAO Bridge Vulnerability
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Summary
Aave reported potential losses of up to $230 million related to a bridge exploit in Kelp DAO’s technology. The risk amounts to $123 million if distributed across all rsETH, or $230 million if confined to Layer 2. The vulnerability allowed $190 million in uncollateralized borrowing. The final impact will depend on how Kelp DAO addresses the shortfall.
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