KelpDAO attack through LayerZero verification cause rsETH loss, Aave money commot and DeFi TVL comot

One KelpDAO attack dis weekend make DeFi TVL drop sharply, total value wey lock don shrink by about $13B. The incident connect to LayerZero verification infrastructure (no be normal smart-contract code exploit), and analysts dey talk say the attacker fit be Lazarus Group. After the KelpDAO exploit, rsETH lose im backing. That one immediately raise liquidation risk for ETH lending, especially for Aave ETH pool. For the next 48 hours, users comot sharply, Aave record about $8.45B outflows and total DeFi assets fall back to mid-$80B range. Traders suppose note say TVL damage fit pass the reported about $292M wey dem steal because DeFi leverage dey count the same collateral many times. Low yields also fit make people take more risk before—on Aave, USDC deposits dem talk say e dey give only about 2.61% per year, make complex leverage no attractive after the shock and quicken position unwinds. Some people talk say “DeFi don die,” but later dem dey frame am as risk-premium repricing rather than permanent collapse. Aave loss-absorption features matter, but short-term meaning na tighter risk budgets. Capital dey rotate: Spark reportedly reduce low-demand rsETH exposure and im TVL rise from about $1.8B to $2.9B.
Bearish
Because KelpDAO exploit make rsETH backing chook, ETH collateral trust for lending markets scatter sharp sharp. The liquidation pressure wey happen cause big Aave ETH-pool wahala and wide DeFi TVL drop, wey usually tight leverage and increase risk premiums for short term. For short run, traders suppose expect more sensitive funding/liquidation around ETH lending collateral and dey more careful about LST-based strategies. For medium to long run, e no be say DeFi go kpai, na more about repricing systemic risk from bridge/verification-layer failures, wey fit raise on-chain capital costs. The rotation effect (Spark move money comot from rsETH) show say capital fit shift instead of vanish, but overall bias for ETH-linked liquidity remain negative until people trust the collateral again.