wrsETH Supply Cap Doubles on Aave Avalanche Market

**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. [View transaction](https://etherscan.io/tx/0xd6b29a3abb883869e70c51c30f5259b0ed3e930cd6c8507377abaab00e692474)

**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 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 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.