Kelp and Aave Complete First Phase of rsETH Recovery After Exploit
Kelp and Aave Complete First Phase of rsETH Recovery After Exploit
🔓 rsETH bridging returns
Recovery Progress
Kelp and Aave have transferred the first tranche of rsETH into the LayerZero OFT Adapter, resuming bridging between mainnet and L2s. The coordinated recovery follows an exploit that required burning compromised rsETH on Arbitrum.
Timeline for Full Restoration
- Withdrawals will unpause within 24 hours
- Deposits and exchange rate updates resume within 48 hours
- Remaining 117,132 rsETH will be refilled over 2 weeks from Aave Recovery Guardian and Kelp Recovery Safe
- All rsETH remains fully backed throughout the process
Security Enhancements
Kelp implemented hardened LayerZero configurations audited by BailSec:
- Verification now requires 4 independent attestors (up from previous setup)
- Block confirmations increased from 42 to 64
- All L2-to-L2 routes deprecated
- Migration to CCIP in progress for strengthened cross-chain bridging
Staking rewards accumulated during the pause period will be distributed to all rsETH holders when exchange rates update.
rsETH operations update. Over the next 24 hours, the Kelp team will be executing a coordinated sequence of contract operations alongside @aave as part of the next steps in the rsETH backing process. There is no user action required during this window. Please rely only on
Kelp and Aave have successfully completed a series of steps for rsETH backing, including burning the exploiter’s rsETH on Arbitrum. 117,132 rsETH will be progressively refilled from Aave Recovery Guardian and Kelp Recovery Safe into the LayerZero OFT adapter on mainnet over the
Quick update: The first tranche of rsETH has been transferred by @aave into the LayerZero OFT Adapter per the coordinated restart plan agreed with Kelp. Bridging is now resumed. Users can move rsETH in and out of L2s from mainnet freely now. 1. rsETH contracts will be
Kelp and Aave Complete rsETH Recovery Process After Exploit
**Recovery Operations Finalized** Kelp and Aave have successfully completed the recovery process for rsETH following a recent exploit: - **117,132 rsETH** will be progressively refilled over two weeks from Aave Recovery Guardian and Kelp Recovery Safe into the LayerZero OFT adapter on mainnet - Exploiter's rsETH on Arbitrum has been burned - rsETH remains fully backed across Mainnet and L2s throughout the process **Operations Resuming** Withdrawals will unpause within 24 hours after the first tranche transfer. All rsETH operations—deposits, redemptions, bridging, and claims—will resume normally once contracts are unpaused. **Enhanced Security Measures** LayerZero bridging has been hardened with: - Verification requiring 4 independent attestors (up from previous configuration) - Block confirmations increased from 42 to 64 - All L2-to-L2 routes deprecated - BailSec audit completed - Migration to CCIP in progress for strengthened cross-chain bridging Verify on-chain: - [Aave Recovery Guardian](https://etherscan.io/address/0x53cb4bb8f61fa45405dc75f476fadad801e653d) - [Kelp Recovery Safe](https://etherscan.io/address/0xb3696a817d01c8623e66d156b6798291fa10a46d)
Kelp and Mantle Discuss DeFi Growth in Upcoming Twitter Space
**Kelp and Mantle are hosting a Twitter Space on March 5 at 1 PM UTC** to discuss the recent growth in Mantle's DeFi ecosystem. The conversation will cover: - Factors driving DeFi expansion on Mantle - Kelp's rsETH integration and its role in the ecosystem - Future developments and plans This follows a previous AMA in September 2024 where Mantle discussed its Layer 2 positioning. [Join the Space](https://x.com/i/spaces/1MJgNgbZQNkGL?s=20)
KUSD Rewards Backed by Real Payment Settlement Activity, Not Market Speculation
**KUSD rewards are generated from actual payment and settlement activity**, marking a departure from typical crypto reward mechanisms that rely on token emissions or market speculation. **Key differentiator:** - Rewards stem from real-world transaction settlement - Activity continues regardless of market conditions - Payments process consistently in both bull and bear markets **Why this matters:** The reward structure demonstrates resilience across market cycles since payment settlement occurs daily, independent of crypto market volatility. This creates a more sustainable reward model tied to genuine economic activity rather than speculative trading. The approach suggests a shift toward utility-driven tokenomics in the liquid restaking space.
wrsETH Supply Cap Doubles on Aave Avalanche Market
**wrsETH supply caps increased to 10k tokens** on Aave v3's Avalanche market after the initial 5k cap filled rapidly. The liquid restaking token launched on Avalanche just last week and quickly reached maximum capacity, prompting this expansion. - Previous cap: 5k wrsETH - **New cap: 10k wrsETH** - Available for deposit now This follows a pattern of high demand for liquid staking derivatives across DeFi protocols, with similar cap increases needed on other networks. [Deposit wrsETH on Aave Avalanche](https://app.aave.com/reserve-overview/?underlyingAsset=0x7bfd4ca2a6cf3a3fddd645d10b323031afe47ff0&marketName=proto_avalanche_v3)