A major breach has hit the DeFi ecosystem, with Kelp DAO losing nearly $292 million after ~116,500 rsETH around 18% of supply was drained. The attack targeted a cross-chain bridge powered by LayerZero, reinforcing a growing concern around bridge security.
In response, key protocols like Aave and SparkLend moved quickly to freeze affected markets, aiming to contain systemic risk. The stolen assets were also spread across multiple chains, making recovery more complex.
This wasn’t just a large exploit it was a structural failure. By manipulating cross-chain messaging, the attacker bypassed core validation layers, a recurring vulnerability in multi-chain architecture.
Why it matters:
Bridges are becoming the backbone of DeFi expansion but also its weakest link. Until security models evolve, capital efficiency across chains will continue to come with elevated risk.
