Don't lose money because of the complacency of protocols! A valuable lesson from the Kelp DAO incident. 💸
1. The "fatal flaw": The 1/1 authentication system of LayerZero Bridge was easily bypassed by hackers after they seized the Key.
2. The trick of siphoning: Hackers used rsETH as collateral to "gut" liquidity from Aave V3 ($196M) and Compound V3.
3. Market reaction: Aave has frozen the rsETH market but the pressure of bad debt remains extremely high if rsETH liquidity collapses.
This is evidence that "Liquidity" is more important than "Total assets". When assets are hacked and there is no liquidity to offload, hackers will turn to DeFi "ATM machines" like Aave.
What do you think about Aave's handling of this case? Are they a "victim" or an "accomplice" due to poor risk management? Leave your comments! 📝#CreatorpadVN #KelpDAOFacesAttack $ETH
1. The "fatal flaw": The 1/1 authentication system of LayerZero Bridge was easily bypassed by hackers after they seized the Key.
2. The trick of siphoning: Hackers used rsETH as collateral to "gut" liquidity from Aave V3 ($196M) and Compound V3.
3. Market reaction: Aave has frozen the rsETH market but the pressure of bad debt remains extremely high if rsETH liquidity collapses.
This is evidence that "Liquidity" is more important than "Total assets". When assets are hacked and there is no liquidity to offload, hackers will turn to DeFi "ATM machines" like Aave.
What do you think about Aave's handling of this case? Are they a "victim" or an "accomplice" due to poor risk management? Leave your comments! 📝#CreatorpadVN #KelpDAOFacesAttack $ETH