Kelp Loses $293M in Bridge Exploit
Kelp loses $293M in a bridge exploit, leaving Aave with over $200M in bad debt. This incident occurred on Saturday evening.
Kelp DAO Bridge Exploit
The attacker sent a crafted message to Kelp DAO's LayerZero-powered cross-chain bridge, releasing 116,500 rsETH, worth about $293 million. No ETH changed hands, and rsETH was spun out of thin air.
Impact on Aave
The attacker deposited the rsETH into Aave V3 as collateral and borrowed real wrapped ether against it, then repeated the trick on Aave V4. By the time Kelp's emergency multisig froze the protocol's core contracts, the WETH was gone.
Aave's Exposure
Aave is left with over $200M in bad debt due to this exploit. 46 minutes was all it took for the attacker to carry out the exploit.
Key Takeaways
- Kelp DAO lost $293M in a bridge exploit.
- The exploit left Aave with over $200M in bad debt.
- The attacker used the stolen rsETH as collateral on Aave V3 and V4.
Frequently Asked Questions
What happened to Kelp DAO?
Kelp DAO's bridge was exploited, resulting in a loss of $293M.
How was Aave affected?
Aave is left with over $200M in bad debt due to the exploit.
