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Crypto majors fall then rebound as Iran tensions escalate; BTC at $75.4k.ETFs see $1.4B in inflows on the week, 2nd biggest week of year.
Kelp DAO's LayerZero bridge exploit minted unbacked rsETH, leaving Aave with $196M in bad debt.
KEY POINTS
- The exploit caused Aave TVL to drop 25% in one day and triggered a DeFi-wide bank run.
- DeFi protocols whitelisted liquid restaking tokens like rsETH as ETH-equivalent collateral, exposing systemic risk.
- Aave, SparkLend, Fluid, Upshift, and Lido all froze rsETH exposure across over 20 chains after the exploit.
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