What caused the $292M KelpDAO hack on Aave?

Attacker exploited LayerZero bridge vuln in KelpDAO, minted unbacked rsETH, deposited to Aave, borrowed $190M ETH/assets, then split.

Will Aave recover fully from the KelpDAO exploit ?

DeFi United's injecting millions in ETH/stETH to recap rsETH—aims to prevent bad debt. More commitments coming; outlook bright if markets hold.

Is DeFi United a one-off bailout or new standard?

It's spontaneous now, but expect it to evolve into protocol norms—decentralized recovery funds for future hacks.

🔗 Crypto & DeFi

$292M KelpDAO Hack: Aave's DeFi Bailout Bid

DeFi's biggest lender is begging for scraps after a $292 million hack. Partners like Lido are tossing ETH into the fire—yet here we are, watching the same old circus.

Fintech Pulse Apr 24, 2026 3 min read

Aave DeFi protocol rallying partners after $292M KelpDAO hack fallout

⚡ Key Takeaways

Aave leads 'DeFi United' bailout after $292M KelpDAO exploit minted unbacked rsETH. 𝕏
Lido, EtherFi, and Stani Kulechov commit millions in ETH to prevent bad debt. 𝕏
Hack echoes 2008 bailouts—centralized fixes for 'decentralized' DeFi flaws. 𝕏

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Fintech Pulse

Informed capital. Intelligent coverage.

#Aave hack #DeFi United #KelpDAO exploit #LayerZero vulnerability #rsETH collateral #rsETH recovery

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Originally reported by CoinDesk

⚡ Key Takeaways

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