Three options for Kelp to socialize $292M exploit losses: burn bridged rsETH holders, haircut all holders, or pre-exploit snapshot

Kelp's $292M bridge exploit left Aave holding ~$200M in bad debt, and now the protocol has to decide who eats the loss. Option one burns only bridged rsETH holders on alt chains, limiting blast radius but establishing bridged assets as second-class citizens. Option two haircuts all rsETH holders pro-rata while Umbrella covers the remainder — makes aWETH whole but triggers mass liquidations on Aave. Option three snapshots pre-exploit and dumps everything onto aWETH stakers via the Umbrella backstop, which gets Kelp banned from DeFi and likely sued by Aave.

TLDR by @Benthic

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• rsETH
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• Snapshot