Earlier today we identified suspicious cross-chain activity involving rsETH. We have paused rsETH contracts across mainnet and several L2s while we investigate.
We will keep you…
Aave Freezes rsETH ContractsIn 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.
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…
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.
