Kelp DAO Hack: Aave DAO Proposes To Contribute 25,000 ETH To Recovery Efforts
Aave DAO has unveiled a proposal to deploy 25,000 ETH from its treasury to support a coordinated recovery effort following the recent Kelp DAO exploit. The move forms part of a broader “DeFi United” initiative aimed at restoring user funds and stabilizing affected lending markets. On April 18, KelpDAO suffered a major attack targeted at […]
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A $292 million hack tied to restaking protocol Kelp DAO has rippled through decentralized finance (DeFi) lending and market confidence far beyond the original incident, with Aave emerging as one of the hardest-hit examples. Over the weekend, Aave’s native token (AAVE) fell by about 26%, while the protocol also saw a sharp decline in total value locked (TVL) and continued outflows that intensified the downturn. Kelp DAO Hack Sparks Aave Crisis The chain of events began with the attacker draining roughly 116,500 rsETH—valued at about $292 million—from Kelp DAO’s LayerZero bridge. The stolen....
A market expert has outlined a major security incident that occurred last weekend, explaining its implications for XRP holders earning yield. On Saturday, April 18, an attacker exploited the LayerZero-powered bridge of Kelp DAO, draining a staggering $292 million in tokens from the liquid staking protocol. So far, the incident marks the largest DeFi hack […]
KelpDAO’s liquid restaking token, rsETH, has become the center of a major DeFi recovery effort after a hack estimated at roughly $290 million. The latest development came on Thursday, when Lido Finance unveiled a proposal aimed at supporting Aave’s (AAVE) coordinated response to the rsETH shortfall. Lido Joins rsETH Recovery Effort The Lido plan was submitted to Aave’s Research Forum following this week’s Kelp incident involving the rsETH LayerZero bridge exploit. While the exploit’s details were still unfolding, Aave moved quickly to organize a larger, ecosystem-wide effort—“DeFi....
David Schwartz, the former Chief Technology Officer (CTO) of Ripple, has addressed recent concerns over DeFi bridge security, reassuring XRP Ledger (XRPL) users that the network is not exposed to attacks like those linked to the Kelp DAO exploit. He emphasized that vulnerability in cross-chain bridge systems largely depends on how they are designed and implemented, as well as on the level of reliance on external bridge infrastructure. How XRP Users Remain Protected From Kelp DAO-Related Exploits In an X post on April 20, Schwartz provided context on how users in the XRP Ledger (XRPL)....
Aave has shed more than 23% of its value since Friday, and the protocol that bills itself as DeFi’s most trusted lender is now managing the fallout from one of the most disruptive exploits in its history — even though its own code was never touched. Related Reading: XRP Just Settled $291 Million On-Chain, Almost Nothing Hit Binance: Find Out What’s Happening The attack unfolded through a bridge vulnerability rather than a flaw in Aave itself. Attackers exploited Kelp’s bridge to obtain $292 million in stolen rsETH, then used it as collateral on Aave V3. Because Aave had....