# DeFi sector reeling from a suspected North Korea-linked hack which has spread to multiple protocols.

*web3 · news · 2026-04-20 · Protos*

## Key points

- The $290 million Kelp DAO rsETH hack exploited a 1-of-1 Layer Zero DVN bridge setup.
- Aave lost nearly $9 billion in TVL and may face up to $341 million in bad debt.
- Layer Zero will no longer act as sole validator for projects using 1/1 DVN configurations.
- rsETH has an estimated 18% shortfall in backing, with Aave depositors facing a possible 5-8% haircut.
- Kelp DAO plans to blame Layer Zero's documentation and default settings for the bridge vulnerability.

**Companies:** Aave, Layer Zero, Kelp DAO
**Countries:** North Korea

[Read the full story on Protos](https://protos.com/defi-sector-in-14b-meltdown-as-290m-rseth-hack-fallout-burns-aave/)

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