KelpDAO ’s liquid staking system (RSETH) was hit hard around

KelpDAO ’s liquid staking system (RSETH) was hit hard around $294M minted and drained in minutes before the protocol could be paused. Even though the response came quickly around 46 mins, the damage was already done.
The attack also raised questions around cross-chain infrastructure LayerZero being used in the flow of the exploit, which triggered panic across the ecosystem.
Market reaction was instant:
$ZRO  dropped sharply 22%
$AAVE  also fell over 24% as risk spread across lending markets
Multiple protocols paused operations to contain exposure
Liquidations hit leveraged traders, adding more pressure
Even protocols not directly affected (like Ethena) paused bridges as a precaution.
This wasn’t just a single protocol exploit it showed how fast risk can cascade across DeFi when liquidity and bridges are tightly connected.

.css-1iqe90x{box-sizing:border-box;margin:0;min-width:0;color:#EAECEF;}KelpDAO ’s liquid staking system (RSETH) was hit hard around $294M minted and drained in minutes before the protocol could be paused. Even though the response came quickly around 46 mins, the damage was already done.

KelpDAO ’s liquid staking system (RSETH) was hit hard around $294M minted and drained in minutes before the protocol could be paused. Even though the response came quickly around 46 mins, the damage was already done.