LayerZero Co-Founder Denies Kelp DAO Allegations, On-Chain Data Shows Manual Change to '1/1' Single DVN Configuration

On May 6, in response to recent allegations from Kelp DAO regarding LayerZero’s involvement in the rsETH security incident, LayerZero CEO Bryan Pellegrino publicly refuted the claims on social media and provided key technical details. Pellegrino stated that the facts are not as Kelp has claimed. According to immutable on-chain records, Kelp DAO proactively changed the cross-chain configuration of rsETH from the default ‘multi-DVN’ setting to a ‘1/1 single DVN’ mode on April 1, 2024. He specifically pointed out that LayerZero’s official documentation has repeatedly warned against using this 1/1 configuration in production environments. He further added that when the LayerZero team previously provided professional advice to Kelp DAO, they consistently recommended using the more secure ‘2/3 multi-signature scheme.’ However, Kelp did not adopt this recommendation. Pellegrino also revealed a key piece of data: during the operation of the 1/1 configuration, nearly 100% of the related cross-chain transaction volume came from rsETH itself. Pellegrino mentioned that LayerZero is currently awaiting the final review report from an external security agency, at which point a complete analysis of the incident will be released. He hinted that the root cause of the incident lies in the project’s disregard for basic security principles.