Aave could face up to $230m in losses after Kelp DAO bridge exploit triggers DeFi chaos
CoinDesk
Aave faces up to $230 million in potential losses after a Kelp DAO bridge exploit compromised the backing of its rsETH collateral.Summary
Aave is managing a potential $230 million shortfall following a bridge exploit involving Kelp DAO's rsETH token. Attackers used a forged cross-chain message to mint unbacked tokens, which were then used as collateral to borrow $190 million from Aave. Aave has frozen rsETH markets to mitigate risk, but final losses depend on how Kelp DAO distributes the debt; if losses are isolated to Layer 2s, Aave could face the maximum $230 million impact. The incident has triggered a $6 billion withdrawal from the platform, highlighting the systemic risks of interconnected DeFi protocols.
(Source：CoinDesk)