Kelp DAO's LayerZero Bridge Exploited; Aave Sees $6.2B in Net Withdrawals

Odaily Planet Daily reported that the LayerZero cross-chain bridge tied to Kelp DAO was exploited on Saturday, with 116,500 rsETH worth about $291 million moved to a newly created wallet. The attacker then pledged the stolen rsETH as collateral to borrow on Aave, pushing utilization in Aave's main lending pool to 100% and tightening liquidity. Blockchain monitor 0xngmi said that by early Sunday, Aave's net withdrawals had climbed to $6.2 billion. Kelp DAO has suspended rsETH contracts across Ethereum mainnet and several L2 networks. Market reaction was swift: AAVE slid 16% to $90.13, while ether fell 2% to $2,300. Justin Sun later posted on X, saying he was seeking to negotiate with the attacker.