🚨 KelpDAO Exploited Massive scale, entire DeFi ecosystem impacted! KelpDAO has confirmed the detection of abnormal cross-chain activity regarding $rsETH and has paused all contracts on mainnet and multiple L2s to contain the situation. Initial findings point to a vulnerability in the LayerZero bridge, potentially linked to a 1-of-1 DVN configuration, a single point of failure that allowed the attacker to execute fraudulent transactions. Approximately 116,500 rsETH (~$290M) was drained from the system. The exploiter didn't stop there: - Deposited rsETH into lending protocols (Aave, Compound, Euler). - Borrowed massive amounts of WETH (~$236M). - Triggered widespread bad debt risk across the DeFi landscape. Aave Response: - Froze all rsETH markets (V3 & V4). - Disabled new deposits and collateral borrowing. - Currently assessing the potential for bad debt accrual. Other platforms have taken swift action: → Lido Finance: Paused deposits into its earnETH product (which has rsETH exposure). → SparkLend, Fluid: Froze markets. → Upshift: Paused vaults. → Pendle, Beefy, and potentially Yearn: Suffering indirect impact. USDT0: - Paused OFT bridge. - Confirmed no direct impact; remains 1:1 backed. Ethena: - Paused LayerZero bridge from Ethereum as a precaution. - Confirmed zero rsETH exposure. - Remains overcollateralized (>101%). The $290 million Kelp DAO hack occurred amidst high market euphoria and abundant liquidity. It officially surpasses the Drift protocol exploit on Solana ($285M on April 1st), marking this as the largest DeFi exploit of 2026. Who will be next? Hacker Wallet: https://t.co/Nw8rLmoinb