Kelp DAO Challenges LayerZero’s Blame After $290 Million Exploit
- On Saturday, attackers exploited Kelp’s bridge, draining 116,500 rsETH valued at approximately $290 million.
- LayerZero’s post-mortem claims Kelp ignored warnings about its single-verifier setup, which Kelp disputes.
- Kelp asserts the compromised decentralized verifier network (DVN) was LayerZero’s own infrastructure, not a third-party verifier.
- The exploit was isolated to the bridge layer, with Kelp’s core restaking contracts remaining secure and an emergency pause preventing further losses.
- 40% of protocols on LayerZero reportedly use the same single-verifier configuration that Kelp employed.
Kelp DAO is contesting LayerZero’s narrative regarding the recent exploit that led to a significant loss of funds, emphasizing reliance on LayerZero’s documented default settings for their DeFi protocol integration. The incident highlights ongoing challenges in cross-chain security and accountability among platforms.
Kelp’s response indicates that they acted within recommended guidelines while using LayerZero’s infrastructure, raising questions about the responsibility for the hack that drained $290 million in rsETH from their system. (Source)
