Kelp DAO hack com drain $300M rsETH; multi-phase recovery don start
Di Kelp DAO hack show say dem short about $300 million worth of rsETH after attackers use bug for rsETH bridge on April 18. The breach make e possible to release 116,500 rsETH without permission, dem scatter am to different wallets and put am for big DeFi apps.
Plenty of the stolen rsETH become collateral for big lending markets like Aave and Compound. Around 107,000 of the stolen rsETH still dey locked for active positions, while DeFi United propose say make dem do recovery in phases to restore rsETH reserves and unwind the compromised loans.
Phase one na for community members to pledge ETH as extra collateral. Dem go slowly convert the ETH back to rsETH to close the deficit step by step. To reduce liquidation volatility during the unwind, the plan still dey include temporary rsETH valuation changes inside the system.
DeFi United estimate say dem fit recover about 13,000 ETH from Aave, then put the ETH back into reserves to support rsETH stability. But wetin go happen depend on coordinated governance votes across ecosystems, so short-term market effects and liquidity fit change depending on timing.
For traders, the main thing to watch na how fast rsETH reserve backing fit rebuild and whether collateral risk for Aave/Compound still dey pressure prices.
Bearish
Dis bad for rsETH for short term because di incident create big reserve-backed shortfall and plenty illicit rsETH lock for active collateral positions. Even if dem get recovery plan, need do valuation adjustments and unwind loans small-small fit keep liquidation/market-risk premium high, wey fit press rsETH price down. Over time, if dem restore reserves well and close collateral orderly, e fit reduce system fear, but governance timing and cross-ecosystem coordination make road uncertain.
Overall: downside risk dey dominate until rsETH reserve backing clear improve and collateral positions don wind down safely.