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The Kelp DAO and LayerZero bridge exploit has left lending protocol Aave facing potential losses of up to $230 million.
Aave faces up to $230 million in potential losses from the KelpDAO and LayerZero exploit.
KEY POINTS
- 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- Over $6 billion was withdrawn from Aave after the incident, signaling major user risk aversion.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
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