Kelp DAO pauses rsETH contracts after cross-chain bridge exploit estimated at about $292 million to $293 million
The Facts
- Kelp DAO reported suspicious cross-chain activity involving rsETH on Saturday and paused rsETH contracts across mainnet and several Layer-2 networks while it investigates.
- An attacker drained about 116,500 rsETH from Kelp DAO in the exploit.
- The losses from the exploit were estimated at roughly $292 million to $293 million.
- Reports say the exploit targeted Kelp DAO's rsETH cross-chain bridge or adapter contract built using LayerZero infrastructure.
- The exploit triggered broader disruption across DeFi platforms, with spillover effects reported beyond Kelp DAO.
- Aave took emergency action related to rsETH exposure after the Kelp DAO exploit, including freezing affected rsETH markets.
- Several reports described the Kelp DAO exploit as the largest DeFi exploit of 2026 by estimated dollar value.
Context
What is rsETH?
rsETH is a token issued by Kelp DAO that represents restaked Ether within its liquid restaking system Bloomberg Business,CoinDesk.
What part of Kelp DAO was exploited?
Reports say the attacker targeted Kelp DAO's rsETH cross-chain bridge, also described as an adapter bridge contract, which used LayerZero infrastructure to move or message assets across chains Cointelegraph,CoinDesk,Block.
Why did the hack affect other protocols?
Because rsETH is used across DeFi, the breach created spillover risk for platforms with exposure to the token; reports specifically say Aave froze affected rsETH markets as part of its response mint,Crypto Briefing,Crypto Briefing.
How left and right read it
Kelp DAO’s decision to pause rsETH contracts across mainnet and several Layer-2 networks underscores how quickly a failure in one cross-chain bridge can spread through an interconnected financial system. With about 116,500 rsETH drained, losses estimated near $292 million to $293 million, and Aave freezing affected markets, the episode highlights systemic risk far beyond a single platform.
A roughly $292 million to $293 million exploit of Kelp DAO’s LayerZero-based rsETH bridge is a stark reminder that complex cross-chain infrastructure can create major vulnerabilities. Kelp’s pause of rsETH contracts and Aave’s emergency freeze of affected markets show why resilience, clear risk controls, and caution around rapidly expanding DeFi products still matter.
The receipts — all 29 sources
Wire services (1)
Independent coverage (28)
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