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A serious exploit like KelpDAO should not happen in the middle of the swing back. Since the beginning of 2026, this is the biggest loss of nearly $300m in rsETH. In the meantime, KelpDAO has frozen everything and rsETH also faced a critical unpegging from ETH, hovering at around $2,000 while ETH is traded at over $2,300. Related parties have announced their tactics: 1. with @LayerZero_Core: + they blamed KelpDAO for choosing a 1-of-1 DVN configuration while they insisted KelpDAO change to multi-DVN setups + no longer support any applications that utilize a 1/1 DVN configuration + a comprehensive review of active integrations was conducted Read full details down below. 2. with @aave + rsETH is frozen across Aave V3 and V4 + Aave contracts are safe and sound + there's an estimated $177m in bad debts from rsETH collateral positions; Aave plans to offset the deficit when the bad debts accumulate Not sure which responsibilities belong to whom, but hopefully strong collaboration among these top DeFi infra teams can resolve this. At this time, recovering the whole fund seems to be impossible, but reputation is what a protocol has in the end.

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