TechFlow reports that on April 19, in response to the KelpDAO hack, Aave tweeted that the rsETH markets on Aave V3 and Aave V4 have been frozen. Aave stated that its contracts were not exploited; this incident is related to the exploitation of Kelp DAO’s rsETH cross-chain bridge. The freeze will prevent new rsETH deposits and rsETH-backed lending. Aave is currently reviewing lending activity involving rsETH on its platform following the exploit and has indicated that, should the protocol incur bad debt as a result, it will explore options to address any deficit.
Earlier reports indicated that Kelp DAO’s cross-chain bridge was attacked, resulting in the theft of approximately $292 million worth of rsETH, placing Aave V3 at risk of bad debt.
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