# KelpDAO And LayerZero Exploit, Aave Freeze, Fluid aWETH Redemptions *KelpDAO's $290M LayerZero bridge exploit impacts Aave markets. Fluid enables aWETH redemptions. LayerZero attributes the attack to RPC poisoning.* By [ETH Daily](https://ethdaily.io) · 2026-04-20 news, 2026, april2026 --- Quick Take ---------- * KelpDAO $290m LayerZero bridge exploit. * Aave freezes WETH and LST markets. * Fluid aWETH Redemption Protocol. * LayerZero RPC-poisoning attack. * Eth.limo suffers nameserver hijack. * * * [ KelpDAO And LayerZero Exploit, Aave Freeze, Fluid aWETH Redemptions ------------------------------------------------------------------- Listen to this episode from Ethereum News on Spotify. KelpDAO suffers a $290 million exploit on its LayerZero bridge. Aave freezes ETH and LST markets amid the exploit. Fluid launches the aWETH redemption protocol. And LayerZero attributes the hack to a RPC-poisoning attack by the Lazarus Group. https://spotify.com ![KelpDAO And LayerZero Exploit, Aave Freeze, Fluid aWETH Redemptions](https://storage.googleapis.com/papyrus_images/90039660e82845ae0e24ed17cc01a03afed4a01d455838c968f88b2fa0f7b025.jpg) ](https://open.spotify.com/episode/5zNT7ktmRAtmOkfwO3SWSD) * * * Sponsored by ------------ [![Lido Earn](https://storage.googleapis.com/papyrus_images/81f33d00a6b2ca439a0c600e476f7ed085d865617c3c00a46875ed73b4c50710.jpg)](https://stake.lido.fi/earn) Lido Earn lets you deploy ETH or stablecoins into curated DeFi strategies for optimised yield. Two vaults, daily rewards, automatic compounding, and first-loss protection. Get started on [stake.lido.fi/earn](https://stake.lido.fi/earn) Notice - April 20, 2026: [EarnETH has direct exposure to rsETH](https://x.com/LidoFinance/status/2046250840961216965). * * * KelpDAO $290M Loss In LayerZero Bridge Exploit ---------------------------------------------- KelpDAO suffered a $290 million exploit involving its LayerZero-powered cross-chain bridge. An attacker released 116,500 rsETH from the bridge contract on Ethereum mainnet without a corresponding burn on L2, representing roughly 18% of the rsETH circulating supply. The funds were used as collateral across Aave V3, Compound V3, and Euler to borrow an estimated $236 million in WETH. [Read more →](https://ethdaily.io/kelpdao-layerzero-bridge-exploit) Aave Freezes ETH And LST Markets -------------------------------- Large depositors, including Justin Sun and MEXC, withdrew millions from Aave in the hours following the KelpDAO exploit. Aave disabled rsETH markets on V3 and V4, disabled WETH markets across Ethereum, Arbitrum, Base, Mantle, and Linea, and disabled borrowing on all LST and LRT collateral types. Aave's TVL has fallen by $8.4 billion since the rsETH exploit. [Read more →](https://ethdaily.io/aave-freezes-eth-lst-markets) Fluid Launches aWETH Redemption Protocol ---------------------------------------- Fluid launched the aWETH Redemption Protocol, allowing Aave lenders to swap aWETH collateral for wstETH or weETH at a cost of approximately 2%. Fluid is able to offer the service because it operates a leveraged looping vault holding $144 million in Aave positions that it is looking to unwind. The solution currently only supports swaps on Ethereum mainnet. [Read more →](https://ethdaily.io/fluid-aweth-redemption-protocol) LayerZero RPC-Poisoning Attack ------------------------------ LayerZero published a statement claiming the exploit stemmed from a sophisticated RPC-poisoning attack and attributed the incident to the TraderTraitor subgroup of North Korea's Lazarus Group. LayerZero Labs placed responsibility on KelpDAO's 1-of-1 DVN configuration and stated it will no longer support single-DVN setups. [Read more →](https://ethdaily.io/layerzero-rpc-poisoning-attack) ETH Limo Nameserver Hijack Via EasyDNS -------------------------------------- Eth.limo, a Web2 gateway that enables ENS domains to be accessed over HTTPS, suffered a domain hijack on April 17, 2026. An attacker tricked the DNS registrar EasyDNS into carrying out a fraudulent account recovery, though DNSSEC contained an attack. Eth.limo plans to migrate to Domainsure, which eliminates account recovery options. [Read more →](https://ethdaily.io/eth-limo-nameserver-hijack) Other News ---------- * Bitmine [buys](https://x.com/ethdaily/status/2046247189857620108) 101k ETH * CoinCenter [report](https://x.com/coincenter/status/2046316994148925527) on code is speech * ENS IPFS [hosted apps](https://x.com/apoorveth/status/2046027899925590505) * L2Beat interactive [interop page](https://x.com/l2beat/status/2046218169337909748) * Vercel [suffers](https://x.com/vercel/status/2045865072074035664) a data breach * 26 protocols [paused](https://x.com/CatfishFishy/status/2045957724538650624) OFT * Solidity survey [results](https://x.com/solidity_lang/status/2046231020090151072) * Privacy Cash [live on](https://x.com/theprivacycash/status/2046242450356715637) Base * Base [agent market](https://x.com/Nick_Prince12/status/2046268042326290472) * * * Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed. --- *Originally published on [ETH Daily](https://ethdaily.io/929)*