Aave WETH Suppliers Urged to Withdraw After KelpDAO rsETH Exploit
BeInCrypto
Aave WETH suppliers are urged to withdraw funds after attackers used stolen KelpDAO rsETH as collateral, creating bad debt on the lending protocol.Summary
Aave V3's WETH reserve is facing bad debt following an exploit of KelpDAO's rsETH liquid restaking token, where attackers drained approximately $290 million in assets. These attackers used the unbacked rsETH as collateral to borrow WETH on Aave, leaving the protocol with unrecoverable debt. Experts have urged users to withdraw their WETH immediately, though some may face partial losses. The incident serves as the first major test for Aave's "Umbrella" system, which will use staked aWETH to cover the deficit through automated slashing.
(Source：BeInCrypto)