On April 18, Kelp DAO’s rsETH cross-chain bridge was exploited by attackers using a LayerZero V2 vulnerability to forge messages, releasing approximately 116,500 unsupported rsETH (worth about 292 million USD at the time), becoming the largest DeFi security incident to date in 2026. The attackers then deposited these unsupported rsETH as collateral into Aave and Compound lending platforms, causing approximately 200 million USD in bad debt; Aave TVL once fell by 10 billion USD. Aave urgently froze the rsETH market.

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