DeFi users pull $10 billion out of the market as $292 million exploit sparks bank-run optics
CryptoSlate
A $292 million KelpDAO exploit triggered a $10 billion DeFi market exodus as protocols rushed to freeze compromised rsETH assets.Summary
A $292 million hack of the KelpDAO bridge, caused by a fraudulent message exploit, triggered a massive market reaction, resulting in $10 billion being pulled from the DeFi ecosystem. The vulnerability allowed attackers to mint unauthorized rsETH, which was then used as collateral on platforms like Aave, leading to significant bad-debt concerns and a surge in withdrawals. As panic spread, multiple DeFi protocols moved to freeze rsETH markets to prevent further contagion, prompting industry leaders to call for stricter rate limits and improved security measures for cross-chain assets.
(Source：CryptoSlate)