As the security crisis stemming from KelpDAO grows in the cryptocurrency market, an official statement has been released from the Aave side. The protocol announced that immediate measures have been taken regarding the rsETH markets following the incident.

In the statement from Aave, it was noted that the rsETH markets on Aave V3 and Aave V4 have been frozen. This step was taken after the attack on the rsETH bridge by KelpDAO. The statement also added that Aave smart contracts were not directly attacked, and the issue originated from a security vulnerability on the rsETH side.

According to the decision made, new deposits and borrowing transactions based on rsETH collateral have been temporarily halted. The Aave team stated that this move was implemented to assess the current situation and limit potential risks.

Meanwhile, the team announced that they have thoroughly examined the rsETH borrowing transactions on Aave following the attack, and the findings will be shared with the public as soon as possible. The protocol also stated that, as a result of the developments, various options will be considered for how to cover any potential "bad debt" that may arise if this gap cannot be repaid.

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