😐 More than 6 billion dollars have been withdrawn from AAVE protocols!

🔸 Reason: KelpDAO hack

➤ Markets rsETH are frozen in Aave V3/V4, SparkLend, Fluid, and 9+ other protocols. Loans with wETH in Core, Prime, Arbitrum, Base, Mantle, and Linea are also frozen.

➤ Layer Zero is called a "leaky" DEFI. The project team remained silent for 10 hours after the hack. Later, they only wrote, "We are aware of the hacker attack... we are trying to determine the root cause of what happened."

Many DeFi protocols suspend LayerZero integrations (OFT bridges).

➤ Kelp + LayerZero are preparing a joint official detailed public report (post mortem).

➤ MoveVM developers are discussing the transition of DEFI to the MOVE programming language. The token #MOVE rose by 44% at the moment (Movement).

However, the root cause of the vulnerability is not related to the programming language and the VM.

➤ Justin Sun offers the hacker a deal - "KelpDAO hacker, how much do you want? Let's just talk. There's no need to sacrifice both Aave and KelpDAO and let them go under because of this hack. In any case, you won't be able to spend $300m."

He personally withdrew 65,584 ETH from AAVE (about $154m).

➤ The hacker tried to steal about 80,000 rsETH more, but was prevented. The damage could have exceeded $400m...

➤ Wrapped rsETH in 20+ L2 chains (Base, Arbitrum, Linea, etc.) are now left without collateral.

This is no longer just a story about another hack. It's a case about how one problematic cross-chain path turns into a systemic risk for all DeFi...

‍#AAVE | #ZRO | |