rsETH Consolidates Networks: 20 Chains Losing Support by June 15
rsETH Consolidates Networks: 20 Chains Losing Support by June 15
🔒 20 chains cut
KelpDAO is discontinuing rsETH bridging support for 20 networks after June 15, 2026, citing security standards and usage patterns.
Affected chains include:
- Optimism, Manta, Mode, Blast, Scroll
- X Layer, zkSync, Zircuit, Swellchain, Hemi
- Berachain, Sonic, HyperEVM, Unichain, TAC
- Avalanche, Plasma Stable, MegaETH, Monad, Movement
Key deadlines:
- Bridge rsETH back to Ethereum mainnet by June 15
- Post-deadline recovery available for 100 USDC per address
This consolidation follows recent security incidents, including a LayerZero exploit that resulted in $300M losses across DeFi. KelpDAO is migrating to Chainlink CCIP for enhanced cross-chain security.
The protocol recently resumed full operations after pausing deposits and withdrawals, with all rsETH now fully backed across mainnet and remaining L2s.
We are consolidating our supported networks to ensure the highest security standards for rsETH based on usage and integrations. The following chains will no longer support rsETH bridging after June 15: Optimism, Manta, Mode, Blast, Scroll, X Layer, zkSync, Zircuit, Swellchain,
rsETH is fully backed as of today across mainnet and L2s and all operations are back to normal. You can verify the detailed numbers in this link: rseth-tracking.vercel.app
rsETH protocol operations have fully resumed. - The exchange rate was updated at 16:45 CET today, reflecting all staking rewards accrued during the pause. - EIGEN claims are now distributable to rsETH holders for the full pause window. - Deposits and withdrawals are live on
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
The exchange-rate update reflects the staking rewards earned by rsETH holders throughout the entire pause window. All EIGEN rewards corresponding to the pause period can now be claimed here: kerneldao.com/kelp/claim-tok…
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
rsETH withdrawals are now live. Bridging and claims are active too, as part of the coordinated restart plan. Exchange rates will be updated around 4:30pm CET on May 15th, along with eigen claims. This should reflect all staking rewards accrued to rsETH holders during the pause.
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
After the recent LayerZero exploit, we are taking steps to ensure rsETH is fully secure, which is why we are migrating to @chainlink CCIP. From the April 18 incident, it is clear that LayerZero's own infrastructure was exploited, resulting in $300M in losses across DeFi.
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DeFi Ecosystem Unites to Restore rsETH Backing Through Coordinated Effort
**Major DeFi protocols collaborated to restore backing for rsETH**, KelpDAO's liquid restaking token built on Eigenlayer. **Key participants in the restoration effort:** - Lending protocols: Aave (with leaders Stani Kulechov and The3D_) - Stablecoin issuers: Circle, Ethena - Liquid staking: Lido Finance, Ether.fi - Infrastructure: Consensys, Mantle Network - Development: BGD Labs - Additional contributors: Golem Project, Ink Foundation, Tydro HQ, Frax Finance The initiative, dubbed **"DeFi United,"** also saw participation from thousands of individual community members. Ethena's contribution was specifically highlighted as part of their ongoing commitment to Aave and the broader DeFi ecosystem. The coordinated response demonstrates the interconnected nature of DeFi protocols and their willingness to collaborate during critical situations affecting ecosystem stability.
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 **Service Resumption** - Withdrawals to be unpaused within 24 hours after first tranche transfer - All operations (deposits, redemptions, bridging, claims) will resume after contract unpausing **Enhanced Security Measures** - Verification now requires 4 independent attestors (previously fewer) - Block confirmations increased from 42 to 64 - All L2-to-L2 routes deprecated - Migration to CCIP in progress for stronger cross-chain bridging - Changes audited by BailSec 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.