Aave rallies DeFi partners to contain fallout from $292 million KelpDAO hack
CoinDesk
Aave and major DeFi partners are coordinating a bailout effort to stabilize markets following a $292 million exploit involving KelpDAO's rsETH token.Summary
Following a $292 million exploit of KelpDAO, which left Aave with significant impaired collateral, the DeFi protocol has launched the 'DeFi United' initiative. This effort, supported by major industry players like Lido Finance and EtherFi, aims to recapitalize rsETH and prevent systemic forced liquidations. The exploit occurred through a vulnerability in a LayerZero integration, allowing an attacker to mint unbacked tokens and borrow heavily against them. While some assets have been frozen, industry leaders are focusing on immediate stabilization to normalize market conditions and protect users from further losses.
(Source：CoinDesk)