KelpDAO unpaused rsETH withdrawals, bridging, and claims as part of a coordinated restart following the protocol's recovery from the April 18th exploit. Exchange rates will be updated around 4:30 pm CET on May 15th, at which point accrued staking rewards for rsETH holders during the pause will be reflected. rsETH is now fully backed thanks to funds raised from DeFi United.

Aave has simultaneously unpaused rsETH across its Ethereum Core, Arbitrum, Base, Linea, and Mantle markets. Deposits remain closed pending a brief stabilization window, and the remaining rsETH tranches will be sent over to fully refill the LayerZero lockbox. Utilization rates across affected markets remain elevated.

Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created

Kelp and Aave have burned the exploiters rsETH on Arbitrum, which was seized during the controlled liquidation of the attacker's rsETH collateral positions on Aave. KelpDAO says the 117,132 rsETH deficit is being progressively refilled from Aave's Recovery Guardian and Kelp's Recovery Safe into the LayerZero OFT adapter on Ethereum mainnet.

Kelp expects to unpause rsETH withdrawals within 24 hours of the first tranche hitting the adapter, after which deposits, redemptions, bridging, and claims will resume as normal. The goal is to ensure rsETH remains fully backed across Ethereum and L2s. On the security side, Kelp has deprecated all L2-to-L2 routes as it migrates to Chainlink CCIP for cross-chain bridging.

Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created

KelpDAO announced it is migrating rsETH from LayerZero to Chainlink's Cross-Chain Interoperability Protocol (CCIP) following the April 18 exploit that resulted in over $300M in losses. KelpDAO says the exploit originated within LayerZero's own infrastructure, not a misconfiguration.

KelpDAO also pushed back on LayerZero's public framing of the incident, arguing that the 1-1 DVN configuration was not unique to Kelp and was used by over 47% of LayerZero’s ecosystem at the time. Kelp also highlights that it detected the exploit itself and alerted LayerZero, rather than being warned by them.

LayerZero CEO Bryan Pellegrino responded to the claims, stating that KelpDAO started with a multiDVN setup of LayerZero Labs and Google, but later changed its configurations to the 1-1 DVN.

Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created