WENDYO is not affected by the rsETH/Aave/LayerZero/KelpDAO incident.Not all routes are fully operational because I’m poor.Cointelegraph (@Cointelegraph):🚨 NOW: KelpDAO clarifies the April 18 exploit was an attack on LayerZero's infrastructure, not Kelp's own systems.It confirms its quick response blocked a follow-up attempt to drain an additional $95M in rsETH. https://t.co/bC8piGigRh ...

Lido reports $21.6M rsETH exposure, may deploy $3M loss bufferLido stated that its EarnETH product has approximately 9% exposure to rsETH (~$21.6 million) via leveraged positions on Aave following the April 18 Kelp DAO incident. Loss outcomes depend on actions by Kelp, LayerZero, and Aave. If necessary, Lido may deploy a ~$3 million first-loss protection mechanism funded by its DAO treasury. stETH and wstETH remain unaffected, and the core staking protocol is not involved.https://t.co/Kb3iFbnJ1N ...

LlamaRisk, an Aave DAO Risk Service Provider, released its rsETH Incident Report, quantifying the potential bad debt impact on Aave under two scenarios:1. Uniform loss socialization across all rsETH~15.12% haircut, resulting in approximately $123.7 million in bad debt, with the largest absolute loss on Ethereum Core and the highest proportional shortfall on Mantle.2. Losses isolated to L2 rsETH~73.54% haircut, resulting in approximately $230.1 million in bad debt, concentrated on L2s. Mantle would face a 71 ...

LlamaRisk, an Aave DAO Risk Service Provider, released its rsETH Incident Report, quantifying the potential bad debt impact on Aave under two scenarios:1. Uniform loss socialization across all rsETH~15.12% haircut, resulting in approximately $123.7 million in bad debt.2. Losses isolated to L2 rsETH~73.54% haircut, resulting in approximately $230.1 million in bad debt, primarily impacting Mantle, Arbitrum, and Base.The report also notes that WETH reserves across chains are at 100% utilization with under $20 ...

KELP DAO'S "ADDITIONAL CONTEXT" ON $292M RSETH DRAIN DISPUTES LAYERZERO ACCOUNT@KelpDAO has published additional context on the April 18 rsETH bridge exploit, directly contradicting @LayerZero_Core's attempt earlier today to pin the $292 million drain on Kelp's security choices. Kelp says two of LayerZero's own RPC nodes were compromised and a third was DDoS'd, all on infrastructure LayerZero built and operated, not Kelp.The dispute centers on the 1-of-1 DVN setup LayerZero called an outlier. Kelp argues it ...

DeFiLlama Co-founder 0xngmi on Kelp DAO rsETH Hack – 3 Potential Paths:Socialize losses across all users18.5% haircut → ~$216M bad debt on Aave.Umbrella covers $55M, Aave treasury covers $85M, leaving $76M gap (can be filled by borrowing or selling ~$51M AAVE from treasury).Rug rsETH holders on L2sCreates ~$341M bad debt on Aave (mainly Arbitrum, Mantle, Base).No Umbrella coverage — Aave would have to absorb everything.Compensate using pre-hack snapshotVery difficult due to heavy fund flows and pooled liqui ...

IMPORTANT AAVE UPDATE:“rsETH on Ethereum mainnet is fully backed.”Aave (@aave):Update on rsETH incident:According to our analysis, rsETH on Ethereum mainnet is fully backed.Out of an abundance of caution, rsETH remains frozen across Aave V3 and V4 and exposure to the incident is capped.WETH reserves also remain frozen across affected markets including ...

RT monetsupply.eth (@MonetSupply)with stablecoin markets beginning to become illiquid, the situation is now entering a more dangerous stage imoto break down the driving factors:the ETH market is ~16.5% backed by rsETH, and rsETH backed loans could see up to 10-15% haircut in emode if losses are socialized equally on mainnet & external chains, leaving 2-3% residual haircut for ETH suppliers after wiping out umbrellaETH suppliers are naturally incentivized to get out ASAP to avoid this, so utilization is pinn ...

Kelp DAO rsETH Bridge Exploit Drains ~$292M, Aave Freezes rsETH MarketsKelp DAO’s rsETH cross-chain bridge was exploited, with approximately 116,500 rsETH drained via LayerZero-related contract calls, valued at about $292 million at current prices; the protocol paused core contracts, blocking further attempts, and is investigating with LayerZero and Unichain, while Aave has frozen rsETH markets and is assessing potential bad debt.https://t.co/Q4CAmGWZ2N ...

layerzero let KelpDAO ship rsETH with a 1/1 DVN config. that's a single-sig bridge. one verifier approved 116,500 fake rsETH into existence, 36% of total supply, and aave/compound/morpho all accepted it as real collateral. 200+ OFTs are deployed on layerzero right now. nobody knows how many are running the same 1/1 config. stargate lost $400m in outflows in 12 hours. wormhole runs 19/19 guardian threshold. axelar uses a full validator set. the bridge competitive landscape just completely reopened and W and ...