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Kelp rsETH exploit is terrible due to extensive DeFi integrations

CN
Ignas | DeFi Research
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4 hours ago
AI summarizes in 5 seconds.

Kelp rsETH exploit is terrible due to extensive DeFi integrations.

Not sure how big the exposure is yet but:

- Aave V3: Markets already frozen

- SparkLend: Also froze the rsETH market

- Lido Earn via Mellow strategy meta-vault. I think it was a leveraged market

- Fluid: Frozen market

- Compound

- Euler

- Upshift: Paused High Growth ETH and Kelp Gain vaults

- Pendle PT YT tokens

- Some Beefy strategies. Yearn?

I suppose LayerZero is probably affected too, as rsETH were bridged from L2s, so I wonder if those rsETH on L2s aren't worthless right now.

The situation is still developing, so I don't want to FUD any protocol, but it seems there are not many places to hide in DeFi.


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Selected Articles by Ignas | DeFi Research

1 day ago
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