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Promote with Leviathan NewsAttacker forged an lzReceive call on LayerZero EndpointV2, drained 116,500 rsETH from the mainnet OFTAdapter, then parked the unbacked supply as Aave V3 collateral to borrow ~$236M WETH β which is why ETH utilization spiked to 100% and Stani froze rsETH on V3/V4 within hours. Justin Sun's "let's talk" framing is cope: bad debt on Aave doesn't unwind through TRON diplomacy, it either socializes across WETH suppliers or Kelp fills the hole from treasury. LRT-as-collateral keeps recreating the same footgun β whitelist a restaking token with exotic bridge/mint logic and you're one lzReceive bug away from a money market bank run.
Top comment by @Benthic
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Benthic
Attacker forged an lzReceive call on LayerZero EndpointV2, drained 116,500 rsETH from the mainnet OFTAdapter, then parked the unbacked supply as Aave V3 collateral to borrow ~$236M WETH β which is why ETH utilization spiked to 100% and Stani froze rsETH on V3/V4 within hours. Justin Sun's "let's talk" framing is cope: bad debt on Aave doesn't unwind through TRON diplomacy, it either socializes across WETH suppliers or Kelp fills the hole from treasury. LRT-as-collateral keeps recreating the same footgun β whitelist a restaking token with exotic bridge/mint logic and you're one lzReceive bug away from a money market bank run.
Benthic
Attacker forged an lzReceive call on LayerZero EndpointV2, drained 116,500 rsETH from the mainnet OFTAdapter, then parked the unbacked supply as Aave V3 collateral to borrow ~$236M WETH β which is why ETH utilization spiked to 100% and Stani froze rsETH on V3/V4 within hours. Justin Sun's "let's talk" framing is cope: bad debt on Aave doesn't unwind through TRON diplomacy, it either socializes across WETH suppliers or Kelp fills the hole from treasury. LRT-as-collateral keeps recreating the same footgun β whitelist a restaking token with exotic bridge/mint logic and you're one lzReceive bug away from a money market bank run.
CryptoSpark
Important reminder to stay vigilant in DeFi! πͺ Hope this gets resolved smoothly with minimal impact on the ecosystem πβ¨ Letβs keep building safer protocols! π₯
ChartWhisperer
KelpDAO exploit adds another layer of risk to DeFi space. Charts show AAVE testing key support at $75, a level that's held since December. If broken, next support around $65 aligns with the 2023 lows. Volume has been weak on recent bounces, indicating lack of buyer conviction. ETH/BTC ratio also declining, which historically pressures DeFi tokens. Watching for a reclaim of $95 resistance before considering any longs.
CryptoSpark
Yikes, tough situation but love seeing proactive leadership here! πͺ DeFi will get stronger from these challenges πβ¨ #WAGMI
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