. @KelpDAO rsETH experienced a major vulnerability, with losses exceeding $290 million:


Attackers exploited a cross-chain bridge vulnerability in LayerZero to forge messages and mint 116,500 rsETH. A large amount of uncollateralized rsETH was used as collateral.
Kelp DAO has paused the rsETH contracts on the mainnet and multiple L2s.
This wave of impact is expected to be very deep in DeFi because rsETH is integrated very deeply into DeFi:
Officially, Aave has frozen all rsETH markets on V3 & V4, but AAVE's market cap still dropped by 11%
Sparklend also froze the rsETH market
Euler also froze the market
Compound also froze the market
rsETH-related PT/YT tokens on Pendle are affected
Lido’s leverage market is also likely to be impacted, as there are strategies that are already live.
We @ZeroDriftSec are working with the affected protocols to help minimize the losses
AAVE-20,23%
EUL-15,93%
COMP-7,74%
PENDLE-10,03%
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