Analysis of Major DeFi Events! Kelp DAO rsETH bridge attacked, Aave launches Umbrella mechanism for the first time in history, 400M USD security fund faces first slash On April 18th, @ KelpDAO's rsETH cross chain bridge (based on LayerZero) was exploited by attackers, who stole 116500 rsETH worth approximately $292 million (18% of the circulating supply!) in one go. The attacker did not directly flee, but instead deposited these 'unsubscribed' rsETH into Aave V3 (and V4) as collateral, lending out WETH in large quantities, resulting in bad debt of $177 million to $200 million in Aave WETH reserves. 2/Aave team responds quickly: ✅ RSETH has been frozen in the V3&V4 markets to prevent further losses ✅ Official confirmation: The Aave contract itself has not been exploited, this is purely an rsETH bridge issue ✅ But bad debts have formed, and WETH suppliers (depositors) are facing potential losses 3/This truly historic moment has arrived - Aave's Umbrella mechanism (a brand new risk management system to replace the old Safety Module by the end of 2025) will launch its first vote within 72 hours! Umbrella currently has approximately $400 million in staked aTokens (yield assets such as aUSDC and aWETH), which will be the first time in DeFi history that it will truly use "automatic slashing" to fill bad debts. 4/
 Rational AAVE staplers will unstake and sell AAVE before the end of voting for a front run. This is likely to further push down AAVE prices by 15-20%. The real buying point is not when the governance proposal is passed, but after the slash is truly executed and the lender is fully compensated. At that time, the market will truly realize that 'DeFi insurance is not a meme, it will really be redeemed'. 5/Inspiration for Investors: WETH supplier: Evaluate as soon as possible whether to withdraw (but this will be gradually resolved after Umbrella is launched) AAVE holders: Short term volatility is intense, but in the long run, this is actually an opportunity for Umbrella mechanism to undergo market stress testing Overall DeFi: Once again, I would like to remind everyone that bridges are still one of the biggest risk points (there have been multiple large-scale bridge related exploits this year) This event will become an important milestone in DeFi risk management in 2026. If you have any additional or different opinions, please feel free to leave a message for discussion! KelpDAO rsETH Aave Umbrella