# The Kelp DAO and LayerZero bridge exploit has left lending protocol Aave facing potential losses of up to $230 million.

*web3 · news · 2026-04-20 · CoinDesk*

## Key points

- Aave faces up to $230 million in potential losses from the KelpDAO and LayerZero exploit.
- The attacker created 116,500 unbacked rsETH by forging a transfer message on the bridge.
- 89,567 fake rsETH were used as collateral on Aave, resulting in $190 million borrowed assets.
- The exploit exploited flaws in how KelpDAO validated LayerZero messages, not a LayerZero hack itself.
- Over $6 billion was withdrawn from Aave after the incident, signaling major user risk aversion.

**Companies:** Aave, Kelp DAO, LayerZero, LlamaRisk

[Read the full story on CoinDesk](https://www.coindesk.com/tech/2026/04/20/aave-could-face-up-to-usd230-million-in-losses-after-kelp-dao-bridge-exploit-triggers-defi-chaos)

---

Canonical: https://newsio.io/n/4f62bca2-2fcd-4ec4-8905-b0143be99a3d/the-kelp-dao-and-layerzero-bridge-exploit-has-left-lending-protocol-aave-facing
Summarized by Newsio from CoinDesk. https://newsio.io/how-it-works