Within 29 hours of the Kelp DAO rsETH bridge vulnerability, Aave V3 experienced a $4 billion reduction in liquidity. WETH utilization reached 100% within 1.4 hours and peaked 7 hours before the protocol guardian froze the contract. The smart contract continued to operate normally, but the bridge did not survive. (Glassnode)
Aave V3 loses $4 billion in liquidity over 29 hours following Kelp DAO rsETH bridge exploit
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Summary
A DeFi exploit at Kelp DAO’s rsETH bridge caused a $4 billion liquidity drop on Aave V3 within 29 hours. WETH utilization reached 100% in 1.4 hours, peaking seven hours before protocol guardians froze the system. The contracts remain active, but the bridge was compromised. A protocol update is expected to address the vulnerability. (Glassnode)
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