rsETH exploiter that borrowed ETH from AAVE has just been targeted for ad-hoc liquidation.
One step closer to resolution 🙏
https://t.co/PKmN4RIKdG https://t.co/kZWwS3Tze2
Kelp DAO Restaked ETH (RSETH)
Sentiment
Shows the token's social media mindshare and sentiment over time
Very strong brief from Aave arguing that SDNY restraining notice on Arbitrum DAO wrongly freezes recovered user funds from the rsETH exploit on the theory that stolen assets briefly held by a suspected North Korean hacker became North Korean property...
5/4/2026 15:34
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People don’t realize how catastrophic Kelp could have been.
Kept bankrupt → $1.5b rsETH locked → $30b aave locked → defi/cefi implodes
@StaniKulechov @MikeSilagadze should get credit for rallying others to solve a potentially horrific cascade. htt...
5/4/2026 14:58
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The fact that the rsETH massive loans were only 2 weeks ago and we are already seeing new instances popping up which cater to the same type of ultra high-LTV leveraged looping on admin-controlled tokens makes it even more clear to me that the industr...
5/3/2026 16:58
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Genuinely WTF is going on with DeFi this month?
Just an insane number of code exploits, oracle exploits, bridge hacks, and key compromises:
LayerZero | $292M | April 18 | rsETH bridge exploit
Drift Trade | $285M | April 1 | Compromised Admin + Fak...
4/30/2026 16:08
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DeFi just pulled together $300M+ to make Kelp's rsETH holders whole after the April 18 exploit. The harder question on Uneasy Money this week: were DeFi yields ever actually pricing this kind of risk?
Plus: the Polymarket soldier, USDT vs. Iran, and...
4/29/2026 16:26
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The rsETH dust is settling.
And the liquidity tells an interesting story.
Over the past week, capital didn't just run; it rotated. Here's where it went:
Lending is quietly ripping
While Aave bled -14% TVL under the weight of bad debt exposure, th...
4/29/2026 13:57
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I was talking to a friend who sits in @LidoFinance earnETH vault which is paused now for deposits/withdrawals due to the rsETH impact on Aave.
In case you weren't aware, you can sell earnETH on a DEX but the issue is there's no liquidity to sell.
S...
4/28/2026 18:49
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I can't imagine anyone choosing to build with, or use L0 after all this.
Prior to the rsETH/L0 incident, I never fully understood the difference in tech between CCIP vs L0. So I wasn't going to avoid L0 if a multichain token was only supported as a...
4/28/2026 18:02
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In today's @Unchained_pod Daily newsletter:
🔥 DeFi United releases its technical plan to restore rsETH after the $292M Kelp DAO exploit — and the contributor list is historic
⚛️ Solana developers converge on Falcon signatures to protect the networ...
4/28/2026 11:00
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So Aave will be putting out a governance vote to temporarily pause $AAVE buybacks.
Some context:
- The buybacks were $1M/week under Aavenomics $52M/year in direct buy pressure.
- Buybacks had already been quietly paused on the day after the rsETH e...
4/27/2026 22:01
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Ethereum fees are up again, but not for the right reasons.
This looks more like crisis-driven activity rather than fresh capital moving on chain.
After the Kelp rsETH exploit, people rushed to withdraw, repay, move funds.
And since Ethereum is sti...
4/26/2026 16:55
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glad to see the rseth hack is moving towards a resolution
once the current danger has passed, it is paramount that defi protocols adopt best practices to prevent recurrence
one thing which could have significantly reduced the damage from the hack i...
4/24/2026 22:53
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im so fkn motivated and fascinated by so many people and companies coming together to fill the rseth hole and make the users whole again.
this is how strong the defi community is and im glad we have people and orgs stepping forward.
i think I'd lov...
4/24/2026 03:25
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The recovery process for rsETH will take years to sort through with courts
Markets need to let stablecoin rates float so the lending markets can clear
If you’re opposed to the roughhousing that entails, then you are supporting freezing markets unti...
4/23/2026 20:47
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xStocks is one of the few projects in the market that's continued to grow despite the rsETH hack.
+11% TVL over the past 48h with $393M in TVL
Currently listing stocks like SPYx, QQQx, NVDAx, TSLAx, AAPLx, METAx, GOOGLx, MSTRx, COINx, HOODx, CRCLx ...
4/23/2026 14:28
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Look, the rsETH thing is going to take a year to resolve in the courts. (Does anyone even know what jurisdiction will handle Kelp claims?)
Markets need to let stablecoin rates float so the lending markets can clear.
And if you’re opposed to the rou...
4/22/2026 18:37
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I remember asking @RobAnon why they didn't participate in the Aavethena loop a few months back.
He told me they didn't take on leverage as a rule, and I was surprised how adamant he was about that.
@infiniFi took zero losses during the rsETH exploi...
4/22/2026 18:25
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It’s been a very hard last week for DeFi.
I was as frustrated as anyone with lack of comms the first 48-72 hours following the rsETH incident. I get it though, it was a lot to juggle, and with great power, comes great responsibility.
I also unders...
4/22/2026 16:37
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The rsETH incident did highlight a risk that was not overtly discussed and that is the risks associated with variable rate lending and the interest spikes that occurred from 100% pool utilisation.
This is one of the core reasons why I remain constr...
4/22/2026 11:08
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After the dust settles with the rsETH hack, the question for me is what is the fair value for $AAVE
- TVL has fallen significantly, dropping from over $36B in mid-January to under $17B today.
- Weekly protocol revenue has plunged 62% before rsETH li...
4/21/2026 22:48
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Rune Christensen says the uncertainty from the rsETH exploit may have caused more damage to DeFi than the hack itself.
"The real problem here is that it brought a lot of systems into states they were not prepared to be in." https://t.co/eJ4fps2imR
4/21/2026 20:54
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I really feel for the @aave team here because even though they own responsibility in what’s ultimately affecting their users having onboarded rsETH, it all starts with L0 (and Kelp).
L0 is a major infra provider, like an electric utility company fo...
4/21/2026 12:22
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What Happened Last Week in DeFi?
KelpDAO Exploit Key Summary:
- KelpDAO rsETH exploit drains $292M via bridge flaw
- Aave faces ~$177M bad debt exposure
- $5.4B exits Aave as utilization spikes
- 20+ protocols pause LayerZero bridges
- YO pauses yoE...
4/21/2026 08:57
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⚠️ALERT: KELPDAO’S SETUP IS USED BY MAJORITY OF LAYERZERO OAPPS
Following the KelpDAO exploit, Dune analyzed ~2,665 LayerZero OApps over the past 90 days and found:
47% use a 1-of-1 DVN setup, 45% use 2-of-2, and only ~5% use 3-of-3 or higher.
Kel...
4/21/2026 07:47
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🔥HASEEB: AAVE HAS ENOUGH EQUITY AFTER KELPDAO EXPLOIT
Dragonfly’s Haseeb Qureshi says Aave may take some debt from the $292M Kelp DAO rsETH exploit but has the equity to pay it off.
He adds DeFi has survived shocks like the 2020 liquidation failur...
4/21/2026 07:10
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🚨UPDATE: KELP FIRES BACK AT LAYERZERO OVER $292M rsETH EXPLOIT
Kelp has pinned the April 18 rsETH incident on a breach of LayerZero Labs infrastructure, citing compromised RPC nodes and a DDoS attack that drained funds.
Kelp denies any fault in it...
4/21/2026 03:15
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No matter what happens with the rsETH resolution, let this be the last time DeFi protocols (or their users) treat any derivative asset as having equal risk as the spot asset.
A derivative is always (always!) riskier. The difference might be small, b...
4/20/2026 15:18
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New @Edge_Pod!
While DeFi suffered a weekend of panic and outflows, @sparkdotfi came out unscathed with no rsETH exposure, plus $277M in net inflows post-L0 exploit.
Having recorded 2 weeks ago, turns out the timing couldn't be better to now learn ...
4/20/2026 13:40
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⚠️ LAYERZERO MAY HAVE ENABLED THE LARGEST DEFI EXPLOIT OF 2026
The $290M rsETH drain wasn't a surprise. It was a LayerZero design choice coming due.
Worth understanding what LayerZero actually is before assigning blame.
LayerZero is the messaging ...
4/20/2026 08:40
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The root cause of the $290M rsETH bridge exploit, based on all available info, was a compromise of the official LayerZero Labs DVN node
LayerZero has long marketed itself as decentralized and free from centralized intermediaries, but in practice thi...
4/19/2026 23:11
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Let's run the numbers on potential scenarios
Imo there's 3 potential actions for kelpDAO to take:
- Socialize losses among all users
- Rug rsETH holders on L2s
- Try to return to holders before hack by using a pre-hack snapshot (very hard to do)
If...
4/19/2026 22:17
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After the rsETH exploit, here's a checklist for every protocol that wants depositors to trust them with real money:
1. Publish your emergency response time publicly
2. Disclose who holds pause keys and how many signatures it takes
3. Show users if t...
4/19/2026 14:44
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It feels pretty cooked right now but I think once @aave ETH deposits/borrows are unfrozen, pending their plans to announce what's next for rsETH, the ETH market rates will normalize faster than most realize.
Some large ETH depositors withdrew from A...
4/19/2026 14:16
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rsETH poses an interesting question. rsETH is minted on mainnet. All other chains hold let’s call it rsETH’ - a derivative of the rsETH held in the bridge escrow.
Are these actually separate products?
The argument is that rsETH’ users took on brid...
4/19/2026 11:45
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Due to the KelpDAO exploiter borrowing over 82,600 $ETH ($195M) from #Aave using $RSETH as collateral, bad debt has appeared on #Aave.
Many whales have withdrawn funds from #Aave, causing its TVL to drop from $26.396B to $20.114B — a decline of $6.2...
4/19/2026 11:40
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for the love of god, never ever decide to deploy a full "omnichain" token that enshrines a 3rd party bridge into the token itself. bridge risk should always be confined to bridged assets. if rsETH was omnichain, like AUSD, the entire supply on L1 wou...
4/19/2026 09:10
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The rsETH exploit is a tragic situation for all of DeFi, and what’s particularly uncomfortable with this situation is the ongoing civil war with (conflicted) people on Twitter trying to decide what “should” happen with the remaining rsETH assets and ...
4/19/2026 09:09
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with stablecoin markets beginning to become illiquid, the situation is now entering a more dangerous stage imo
to break down the driving factors:
the ETH market is ~16.5% backed by rsETH, and rsETH backed loans could see up to 10-15% haircut in emo...
4/19/2026 02:22
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In the interests of stating it publicly, Wildcat *as a protocol* is unaffected by today’s attack - no borrowers have any markets with rsETH as the underlying.
It remains to be seen how any second-order effects bleed out, and Labs will be paying atte...
4/19/2026 02:09
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As per @zachxbt, KelpDAO was exploited for ~$294M. 🚨
The exploiter minted 116,500 $RSETH (~$293.72M).
They then dumped $RSETH and also pledged it as collateral to borrow $ETH, walking away with 106,467 $ETH (≈$249.74M).
https://t.co/dbZFaGbXYd ht...
4/19/2026 01:56
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Due to the KelpDAO exploit, the attacker deposited $RSETH into #Aave to borrow $ETH, creating bad debt on #Aave.
Many whales have already rushed to withdraw their $ETH from #Aave.
$ETH Utilization Rate on Aave has now reached 100%. https://t.co/Tv...
4/19/2026 01:50
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The fallout from the Kelp rsETH exploit is going to be messy and could potentially be quite a bit more severe than some people are making out right now.
It seems rsETH on mainnet is technically still backed, but, there's no liquidity to sell rsETH,...
4/18/2026 22:03
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Spark is focused on maximizing user safety across our product suite
this is why we deprecated rsETH (alongside other low-usage assets) in January, and continue to tighten the collateral and feature-set over time
it's also why we have continued to s...
4/18/2026 20:40
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is all rsETH backed by ETH or not?
and it looks like it is?
if it is , i think the bad debt is not going to be as bad as many people think??
this was not a mint attack, it was stolen rsETH off a bridge, so assuming its all backed, bad debt across ...
4/18/2026 20:30
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Description
#0
Kelp DAO Restaked ETH is a liquid restaking token representing staked ETH across multiple providers. It allows users to earn additional rewards by restaking their already staked ETH tokens while maintaining liquidity and DeFi participation.
| Sector: | Wrapped Assets |
| Blockchain: | Ethereum |
Social Statistics
Social media metrics tracking this token's online presence. Mindshare shows the percentage of crypto discussion focused on this token. Momentum indicates trend direction (rising or falling). Net Sentiment measures overall community sentiment (positive, negative, or neutral) based on the difference between positive and negative mentions.
Mindshare (24h)
0.00%
Mindshare Momentum
Down
Net Sentiment
Neutral
Sentiment Momentum
Up
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