$300M rsETH Stolen from KelpDAO Bridge
An exploiter stole $300 million worth of rsETH from KelpDAO's Ethereum bridging contracts. The stolen tokens were used as collateral on Aave and Compound to borrow ETH through looped positions.
Key Impacts:
- More rsETH now circulates than exists in backing reserves
- Lending protocol debt is effectively undercollateralized
- Aave and Compound paused rsETH and ETH markets
- DeFi Saver automation features affected for these assets
Current Status:
- Aave V3 and V4 rsETH markets frozen
- No new deposits or borrowing against rsETH allowed
- Teams reviewing post-exploit borrows
- Resolution approaches under discussion
Aave confirmed their contracts were not exploited - the vulnerability was in KelpDAO's bridge. If bad debt accumulates, protocols will explore deficit offset options.
Update on the rsETH incident Yesterday, an exploiter managed to steal $300m worth of KelpDAO $rsETH from their bridging contracts on Ethereum mainnet, after which they proceeded to use it as collateral in multiple lending protocols. They predominantly used Aave and Compound,
Kelp DAO Hack: Options for Affected Position Holders
DeFi Saver has published guidance for users impacted by the Kelp DAO security incident. The blog post outlines available options for those whose positions were affected by the hack. Users can review detailed steps and recommendations on how to proceed. **Key Points:** - Comprehensive guide for affected position holders - Multiple options presented for managing impacted assets - Detailed walkthrough available on the DeFi Saver blog Read the full analysis: [The Kelp DAO Hack Affected Your Position - Here Are Some Options](https://blog.defisaver.com/the-kelp-dao-hack-affected-your-position-here-are-some-options/)
馃敁 Compound V3 Markets Set to Resume Operations This Weekend
**Compound V3 markets are preparing to resume operations** following the rsETH incident that led to widespread pausing of lending markets. **Key Updates:** - USDC market on Ethereum mainnet scheduled to unpause Saturday, April 26 - WETH markets across multiple chains (Arbitrum, Optimism, Base, Linea, Unichain) also set to resume - All other previously paused markets remain frozen for now **What This Means:** Once unpaused, users will regain full functionality including withdrawals, borrowing, and automated position management. Currently, users can only supply collateral or repay debt. The gradual reopening suggests a cautious approach to restoring normal operations after the security incident.
DFS Expands aWETH Management Tools for Aave Positions

DeFi Saver has rolled out three new features for managing aWETH-based positions on Aave: **New Capabilities:** - Collateral switching for aWETH - Repay with collateral for aWETH - Repay ETH debt using aWETH liquidity These tools address challenges from the ETH market's persistent 100% utilization rate. The collateral switching feature uses aWETH tokens directly through Fluid's aWETH Redemption Protocol, bypassing the need to withdraw underlying assets. **Key Considerations:** - Liquidity constraints apply based on available aWETH through Fluid - Users should verify target asset utilization isn't at 100% - Currently live on Ethereum mainnet - L2 support coming tomorrow Access the features at [app.defisaver.com/aave](https://app.defisaver.com/aave/)
New Dashboard Tracks Complete Savings Breakdown and Projected Returns
A new dashboard feature now provides users with a **comprehensive view of their savings** across all positions. Key features include: - Complete breakdown of all savings positions - Projected return tracking with flexible timeframes - Weekly, monthly, and yearly projection options The dashboard builds on existing portfolio statistics features, offering users **enhanced visibility** into their financial positions. Users can now monitor their savings performance with greater precision and planning capabilities. This update provides a centralized hub for tracking investment progress and making informed decisions about future savings strategies.
馃殌 Yield Revolution: Yearn V3 Goes Live with Automated Multi-Protocol Strategies
**Yearn V3 launches** with automated yield strategies that rotate between protocols to find optimal risk-adjusted returns. **New yield options now available:** - **Steakhouse Morpho vaults** - institutional-grade risk management from Morpho's largest stablecoin curator - **Spark Savings** - powered by Sky's Liquidity Layer, anchored to Sky Savings Rate with RWA backing - **Sky Ecosystem Savings Rate** - earn yield on USDS with instant redemptions The platform automatically allocates between different strategies including SKY, SPK, Aave, and Compound to maximize returns without user intervention. **Enhanced USDS options** include a Liquid Locker Compounder Vault that stakes in the USDS-1 vault while earning additional YFI rewards. Users don't need to take any action - the vaults handle strategy optimization automatically in the background.