Kelp DAO Suffers $292 Million rsETH Exploit – Details

bitcoinistОпубліковано о 2026-04-19Востаннє оновлено о 2026-04-19

Анотація

Kelp DAO has suffered a major cross-chain exploit resulting in the loss of approximately 116,500 rsETH, valued at nearly $292 million. The attack targeted a vulnerability in the protocol's cross-chain bridge mechanism, specifically through LayerZero’s EndpointV2. On-chain investigator ZachXBT first identified the breach, noting that the attacker used Tornado Cash to conceal funding sources. In response, Kelp DAO immediately paused all rsETH contracts across mainnet and Layer-2 networks, preventing two additional attempts to drain another $100 million in assets. The protocol is collaborating with LayerZero and Unichain for a full investigation. The incident has impacted the broader DeFi ecosystem, leading Aave to freeze rsETH markets on its V3 and V4 deployments as a precaution, though its own contracts remain secure. The stolen rsETH represents around 18% of its circulating supply, significantly damaging liquidity and user confidence.

Wu Blockchain reports that Kelp DAO has suffered a massive cross-chain exploit that drained approximately 116,500 rsETH, valued at nearly $292 million. The incident raises fresh concerns about the protocol’s security, coming less than a year after a previous disruption tied to a smart contract bug

Kelp DAO Response Prevents Additional Exploit Attempts

According to blockchain data, the attack on the Kelp DAO exploited a weakness in cross-chain communication, specifically targeting the bridge mechanism used to transfer assets across networks. The exploit was executed via a call to the “Iz Receive” function on LayerZero’s EndpointV2, which ultimately triggered the release of funds to an attacker-controlled wallet.

On-chain sleuth ZachXBT was among the first to uncover the breach, estimating losses exceeding $280 million across Ethereum and Arbitrum. The blockchain investigator also noted that the attack addresses had been initially funded via Tornado Cash, indicating a deliberate effort to conceal the funding sources for the highly coordinated attack.

Earlier today we identified suspicious cross-chain activity involving rsETH. We have paused rsETH contracts across mainnet and several L2s while we investigate.

We are working with @LayerZero_Core, @unichain, our auditors and top security experts on RCA.

We will keep you...

— Kelp (@KelpDAO) April 18, 2026

In response to this attack, Kelp DAO implemented an immediate halt to all rsETH contracts across its mainnet and connected L2 networks. The protocol also froze activity across its core contracts and systems that cover deposits, withdrawals, and oracle functions. According to Kelp DAO, an ongoing investigation is underway with LayerZero and Unichain.

Notably, the attacker attempted two additional transactions to drain another 40,000 rsETH, worth close to $100 million. However, Kelp DAO’s swift measures ensured both attempts failed, preventing losses from rising to $391 million.

Aave Freezes rsETH Contracts

In other news, the fallout has quickly spread beyond Kelp DAO, with lending protocols feeling immediate pressure. Aave, one of the largest DeFi lending platforms, responded by freezing rsETH markets across its V3 and V4 deployments.

However, Aave has clarified that its own smart contracts were not exploited, and the measure is purely precautionary to limit further debt exposure to rsETH as they assess the situation. Aave management is also committed to evaluating potential mitigation strategies if any bad debt emerges from the exploits.

The rsETH markets on Aave V3 and Aave V4 have been frozen. Aave's contracts have not been exploited and this is an exploit related to rsETH.

The freeze follows an exploit of the Kelp DAO rsETH bridge. Freezing the rsETH markets prevents new deposits and borrowing against rsETH...

— Aave (@aave) April 18, 2026

rsETH itself is a liquid restaking token designed to represent staked ETH while enabling users to earn additional yield through restaking strategies. It plays a key role in cross-chain DeFi, allowing capital to move seamlessly across multiple networks, including Arbitrum, Base, and Scroll. The scale of the exploit is particularly damaging as the stolen funds represent roughly 18% of rsETH’s total circulating supply, representing a significant hit to both liquidity and user confidence.

ETH trading at $2,345 on the daily chart | Source: ETHUSDT chart on Tradingview.com

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Пов'язані питання

QWhat was the total value of rsETH drained in the Kelp DAO exploit, and how many tokens were stolen?

AApproximately 116,500 rsETH was drained, valued at nearly $292 million.

QWhich specific function was exploited in the cross-chain communication attack on Kelp DAO?

AThe exploit was executed via a call to the 'Iz Receive' function on LayerZero's EndpointV2.

QHow did Kelp DAO respond to the attack to prevent further losses?

AKelp DAO immediately halted all rsETH contracts across its mainnet and connected L2 networks, and paused activity in its contracts for deposits, withdrawals, and oracle functions. This prevented two additional attempts to drain 40,000 rsETH.

QWhat action did the lending protocol Aave take in response to the Kelp DAO exploit, and why?

AAave froze rsETH markets across its V3 and V4 deployments as a precautionary measure to limit further debt exposure to the compromised token, clarifying that its own smart contracts were not exploited.

QWhat is rsETH and what key role does it play in the DeFi ecosystem?

ArsETH is a liquid restaking token that represents staked ETH, enabling users to earn additional yield through restaking strategies. It allows capital to move seamlessly across multiple networks like Arbitrum, Base, and Scroll, playing a key role in cross-chain DeFi.

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