News linked to both this project and an event.
Lido has released an update regarding the Kelp security incident, stating that its Earn-series vaults are working with the management team to address the issue, focusing on two key risk areas: rsETH exposure and tightening liquidity in lending markets. Lido emphasizes that its core staking protocol remains unaffected, and both stETH and wstETH remain secure and stable. Currently, only the EarnETH vault holds approximately 9% of its TVL in rsETH exposure; related deposits and withdrawals have been suspended by the management team pending resolution. Of the ~$70 million in ETH stolen in the earlier attack, roughly $70 million has already been recovered; asset recovery and loss allocation efforts are ongoing. To mitigate liquidity pressure, the management team has reduced leverage and optimized position structures, significantly decreasing wETH debt exposure. Should losses ultimately materialize, EarnETH will activate its $3 million “first-loss protection mechanism,” funded by the DAO. Other vaults remain unaffected: DVV and EarnUSD are operating normally. The GGV sub-vault is currently experiencing negative yields due to a combination of recursive staking strategies and rising borrowing rates, but active adjustments are underway. Users’ previously submitted withdrawal requests will be processed at pre-incident valuations.
Odaily News Wall Street investment bank Jefferies' analysis indicates that the approximately $293 million attack on Kelp DAO on April 18 exposed critical infrastructure risks, which may prompt traditional financial institutions to reassess the pace of blockchain and tokenization advancement.Jefferies believes the attacker triggered market sell-offs and liquidity stress by minting unbacked tokens and borrowing across platforms. The incident is suspected to be potentially linked to the Lazarus Group and also highlights the single point of failure in the validation mechanisms of cross-chain bridges. As institutions accelerate the tokenization of assets (such as funds, bonds, and deposits), related risks may cause some banks and asset management firms to temporarily pause deployments, prioritizing a review of system security. Especially in scenarios reliant on cross-chain infrastructure, security vulnerabilities could lead to market fragmentation, undermining the practical utility of tokenized assets.Despite short-term confidence being shaken, Jefferies still emphasizes that the long-term trend remains unchanged. Against the backdrop of regulatory progress and continuous infrastructure improvement, use cases like stablecoins still hold growth potential. However, the industry as a whole is still in its early development stage and requires time to enhance system robustness. (CoinDesk)
Odaily News Kelp DAO officially posted on X regarding the follow-up on the theft incident, stating that the cause was the compromise of two RPC nodes hosted by LayerZero, while the third RPC node suffered a DDoS attack. This was an attack targeting LayerZero's infrastructure; Kelp's own systems were not involved in the construction or operation of this infrastructure.The 1/1 DVN configuration is the scheme documented in LayerZero's documentation and is the default setting for all new OFT deployments. Kelp has been operating on LayerZero's infrastructure since January 2024 and has maintained open communication with the LayerZero team. During Kelp's expansion to Layer2, the DVN configuration was discussed, and the default configuration was explicitly confirmed as appropriate at that time.Kelp's current top priority is to protect user interests and prevent risks from spreading within the DeFi ecosystem. The team is collaborating with various parties in the ecosystem to analyze the impact, seek support, and explore all possible mitigation solutions.
Odaily News: A LayerZero cross-chain bridge related to Kelp DAO was hacked on Saturday, resulting in 116,500 rsETH worth $291 million flowing to a new wallet. The hacker used the illicitly obtained rsETH as collateral to borrow on Aave, causing the utilization rate of Aave's core lending pool to reach 100% and triggering a liquidity crunch. According to monitoring by 0xngmi, as of early Sunday, the net withdrawal amount from Aave had reached $6.2 billion. Kelp DAO has suspended the rsETH contracts on the Ethereum mainnet and several L2 networks. Affected by this, the price of the Aave token fell 16% to $90.13, and the price of Ethereum dropped 2% to $2,300. Currently, Justin Sun has posted on platform X attempting to negotiate with the hacker.
Odaily News On-chain data indicates that Kelp DAO's rsETH bridge protocol based on LayerZero is suspected of being exploited by hackers, resulting in a loss of 116,500 rsETH, valued at approximately $292 million.
According to an official announcement, cryptocurrency futures exchange KieDex has raised $3.5 million in funding, led by Marqel Capital. The company stated that the funds will be used to build the KieDex platform and develop a next-generation cryptocurrency futures exchange focused on fast, secure, and incentive-driven trading experiences. Supporting partners include Hidden Street Capital, Caviar, CSP DAO, Solulu Club, Rocket, TPC, Devmons, and TATATU.