rsETH Now Live on Polynomial Finance for Perpetual Trading

KelpDAO is supporting the recovery of Orbit Bridge following a previous exploit. The multi-phase recovery plan focuses on three key areas: - **Recapitalizing the bridge lockbox** to restore locked funds - **Restoring oracle functionality** for accurate price feeds - **Clearing deficits** across all affected markets Kelp's contribution aims to accelerate the recovery process and help return the bridge system to normal operations. The recovery follows a draft plan initially outlined in October 2025. [Transaction details](https://etherscan.io/tx/0x25dc2ac15ac6b60093c6b6ed1615dc41d5a3994bf36e820465bad6a283f9b693)

Kelp has delivered its pledged 2,000 ETH contribution to the DeFi United recovery initiative, aimed at restoring rsETH backing to its nominal exchange ratio following an April 18 incident. **Recovery Progress:** - Initial shortfall: 163,200 ETH - Kelp recovered: ~43,000 ETH - Arbitrum Security Council secured: 30,700 ETH - Remaining gap: ~89,500 ETH The recovery effort, led by Aave, involves contributions from multiple DeFi protocols including Mantle, EtherFi, Lido, Golem, and others. A technical implementation plan has been published covering the restoration of rsETH backing and clearing affected positions across Aave and Compound markets. Kelp has also submitted a proposal to Arbitrum to release frozen ETH into the recovery fund. The plan aims to restore full backing without socializing losses, pending governance approvals and finalized agreements.

KelpDAO has reaffirmed its commitment to rsETH holders following an incident affecting the token's backing. The team has released a technical implementation plan focused on: - **Restoring full rsETH backing** - **Clearing affected positions** on Aave and Compound - **Resuming normal market operations** across impacted platforms The plan is designed to make rsETH holders whole without spreading losses across the broader community. Implementation requires governance approvals and finalized agreements, with progress updates promised as each milestone is reached. KelpDAO emphasized this approach reflects their internal commitment made before any public statements: ensuring rsETH holders would not be left behind.

**Kelp has completed a security overhaul of its rsETH bridging infrastructure following an April 18 exploit of LayerZero's hosted infrastructure that drained 116,500 rsETH.** **What happened:** - Attackers forged a cross-chain message through LayerZero's infrastructure - The exploit targeted the bridging adapter, not Kelp's core systems - Kelp's onchain and offchain infrastructure remained unaffected **The response:** - Full security hardening completed as of April 29 - Every parameter now explicitly defined end-to-end - All deviations from LayerZero's defaults strengthen security - System no longer relies on inherited assumptions The upgrade establishes a more resilient baseline for rsETH and demonstrates how cross-chain bridging can adapt after infrastructure-level attacks. Kelp continues investigating more secure long-term cross-chain solutions.

KelpDAO has outlined a comprehensive security roadmap following a bridging pause: **Immediate Actions:** - Monitoring locked supply backing bridged assets - Sunsetting low-TVL spoke chains to reduce attack surface - Phased reactivation prioritizing reliability over speed **Development Pipeline:** - Unified backing dashboard for full mainnet and L2 visibility - Built-in rate limits for rsETH under evaluation - Investigation into more secure cross-chain infrastructure providers The protocol emphasizes a measured approach to resuming operations, with a detailed timeline forthcoming. This follows the temporary pause of USDS OFT bridging during an rsETH review, though USDS remains fully collateralized and verifiable onchain.