Traders don’t see Kelp socializing losses after $292 million exploit

Polymarket prices low odds of a system-wide redistribution, as the protocol weighs how to handle an undercollateralized rsETH supply What to know : A Polymarket contract suggests only a 14% chance that Kelp DAO will spread the losses from the $292 million rsETH exploit across all holders. The hack drained about 116,500 rsETH from a LayerZero-powered bridge spanning more than 20 blockchains, leaving some rsETH undercollateralized and certain users effectively holding partially unbacked tokens. Implementing a system-wide loss redistribution, similar to Bitfinex’s 2016 hack response or derivatives exchanges’ auto-deleveraging, would be technically complex and politically fraught.(Coindesk)