The $292 million @KelpDAO exploit is the final proof that restaked collateral is a systemic time bomb. By using a forged LayerZero message to mint unbacked rsETH and immediately dumping it into @aave as collateral, the attacker effectively sold a bridge bug to the entire DeFi ecosystem for $236 million in WETH. This is a collateral contagion event. Aave and Compound were caught treating a wrapped bridge asset as if it had the same security profile as native ETH. Now the market is staring at massive bad debt because 18% of the rsETH supply was created out of thin air. The lesson here is simple. If an asset depends on a cross chain bridge for its value, it is not a blue chip. Until we stop allowing bridge risks to infect primary lending markets, one forged instruction will always be enough to drain the entire system. https://t.co/8r5ICUJDcV