Latest $290M exploit hit DeFi so hard it forced Aave onto Solana as part of rescue efforts

A recent $292 million exploit involving KelpDAO's rsETH token, stemming from a LayerZero bridge vulnerability, has significantly impacted the DeFi landscape. Attackers allegedly redeemed unbacked rsETH tokens on Ethereum and used them as collateral on platforms like Aave, Compound, and Euler, leading to a massive $292 million in borrowed assets. This caused a liquidity crisis on Aave, with its WETH utilization reaching 100% and triggering a 17% decline in total DeFi value locked. In response, Aave and KelpDAO organized 'DeFi United,' a recovery effort that has secured nearly $240 million in commitments from various DeFi participants. Notably, the Solana Foundation has lent USDT to Aave to support these recovery efforts and restore confidence. This move marks an unusual cross-chain intervention by Solana, aiming to stabilize the broader DeFi market, as blockchain economies are interconnected. Bringing AAVE to Solana also offers strategic benefits, potentially deepening cross-chain liquidity and expanding access for Solana users.

(Source：CryptoSlate)