LayerZero Says Kelp Setup Caused Exploit, as Aave Loss Questions Mount
Cointelegraph
LayerZero blames an insecure 1/1 DVN configuration by Kelp DAO for a $290 million exploit, causing significant ripple effects on the Aave lending protocol.Summary
LayerZero reports that a $290 million theft from Kelp DAO occurred due to Kelp's decision to use a single decentralized verifier network (DVN), ignoring LayerZero's recommendations for multi-DVN diversification. The exploit utilized stolen rsETH to borrow funds on Aave, creating approximately $195 million in bad debt and triggering widespread concerns regarding liquidity and potential losses for Aave users. While Aave has frozen rsETH assets, the industry is currently debating who should bear the financial responsibility for the incident.
(Source：Cointelegraph)