Aave V3 loses $4B liquidity after Kelp DAO rsETH bridge exploit
The contracts held — the bridge didn't. Aave V3 lost $4B of usable liquidity in 29 hours, and WETH utilization hit 100% in under 90 minutes before the Protocol Guardian stepped in.
The contracts held — the bridge didn't. Aave V3 lost $4B of usable liquidity in 29 hours, and WETH utilization hit 100% in under 90 minutes before the Protocol Guardian stepped in.
The KelpDAO rsETH exploit pulled $12B+ from Aave, and a cross-chain rescue — Solana lending USDT, AAVE going multi-chain — is now the recovery's defining bet.
No user funds were lost and a patch is already live, but a 13-block reorg on a top-20 PoW chain is the kind of event miners, exchanges, and custody providers will be reading closely for weeks.
About 4,500 BTC are reportedly inaccessible after private keys vanished with the missing co-founder, withdrawals are halted, and losses could top $100M as Polish authorities open criminal probes.
GitHub commit logs show the consensus bug was privately fixed four weeks before the attack; the Foundation's 'zero-day' framing is now in dispute, and the LTC moved during the 32-minute invalid…
Five months after a ~$120M exploit, the Balancer attacker is back on-chain, swapping 1,100 ETH into BTC through THORChain's cross-chain router in under an hour.