Huo Xing Finance reports that on April 19, crypto KOL benmo.eth posted that the rsETH theft incident involving KelpDAO has far-reaching implications, with responsibility being contested between KelpDAO and LayerZero. He believes the incident may lead to the following consequences: · The security of wrapped assets like LRT cannot be equated with that of native assets; lending protocols should not treat them as equivalent collateral in mixed pools. · LayerZero may lose a portion of its cross-chain market share; several assets, including usde and usd0, have already discontinued its cross-chain solution, and even if operations resume, reputational recovery will be extremely difficult. · Aave’s reputation for security has been compromised, and risks within the unified lending market are once again under close scrutiny by large holders. Each new collateral asset introduces additional risk to existing ones—an imbalance that is unfair to native assets. Aave V4 and modular lending may become future trends, potentially accelerating the transition. The market will increasingly focus on “lending business fundamentals” rather than individual platforms or curators, though operational costs will rise accordingly. · The cost of acquiring TVL on L2s will further increase, potentially causing some liquidity to flow back to L1. · DeFi will shift away from expansionist strategies toward a more conservative security model, while also needing to address emerging AI-driven security threats such as Anthropic Mythos.
KelpDAO Hack May Accelerate DeFi Shift to Modular Lending, LayerZero Loses Cross-Chain Market Share
MarsBitShare
Summary
The DeFi exploit at KelpDAO may drive lending protocols toward modular models, as on-chain developments highlight the risks of treating wrapped assets as native. Aave’s security reputation is under pressure, potentially accelerating the adoption of Aave V4. LayerZero’s cross-chain market share appears to be declining. On-chain data also suggests rising L2 TVL costs and a more cautious approach to DeFi security.
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