Spark's January rsETH delisting leaves SparkLend liquid while Aave freezes across five networks

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Spark head of strategy MonetSupply notes the protocol's January rsETH delisting — which cost SparkLend business to Aave and annoyed ETH loopers at the time — is paying off now. SparkLend retains ample ETH withdrawal liquidity while Aave markets on mainnet, Arbitrum, Base, Plasma, and Mantle locked up after the Kelp DAO exploit drained ~116,500 rsETH (~$292M) and borrowers pinned utilization across Aave pools. Trade-off: short-term revenue loss for not being the protocol stuck holding the bag during a live rsETH meltdown.

TLDR by @Benthic

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Spark's January rsETH delisting leaves SparkLend liquid while Aave freezes across five networks

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Safe Wallet module exploit drains $7.8M in rsETH on Ethereum

Kelp DAO sues LayerZero and co-founder Bryan Pellegrino over rsETH bridge exploit

MEV bot front-runs $7.81M rsETH exploit, leaving Gnosis Safe whale with $7.73M loss

Kelp sets June 15, 2027 deadline for rsETH recovery from sunset networks with 100 USDC fee

OAK Research revisits LayerZero’s role in crypto after the $292M rsETH exploit, asking whether omnichain interoperability creates more systemic risk than value

Aave details April's rsETH bridge exploit that forged a LayerZero message, releasing 116,500 unbacked rsETH and triggering a DeFi-wide recovery effort that secured over $300M in commitments

Safe Wallet module exploit drains $7.8M in rsETH on Ethereum

Kelp DAO sues LayerZero and co-founder Bryan Pellegrino over rsETH bridge exploit

MEV bot front-runs $7.81M rsETH exploit, leaving Gnosis Safe whale with $7.73M loss

Kelp sets June 15, 2027 deadline for rsETH recovery from sunset networks with 100 USDC fee

OAK Research revisits LayerZero’s role in crypto after the $292M rsETH exploit, asking whether omnichain interoperability creates more systemic risk than value

Aave details April's rsETH bridge exploit that forged a LayerZero message, releasing 116,500 unbacked rsETH and triggering a DeFi-wide recovery effort that secured over $300M in commitments

Spark's January rsETH delisting leaves SparkLend liquid while Aave freezes across five networks

More coverage

Explore the topic

More on $rsETH

Safe Wallet module exploit drains $7.8M in rsETH on Ethereum

Kelp DAO sues LayerZero and co-founder Bryan Pellegrino over rsETH bridge exploit

MEV bot front-runs $7.81M rsETH exploit, leaving Gnosis Safe whale with $7.73M loss

Kelp sets June 15, 2027 deadline for rsETH recovery from sunset networks with 100 USDC fee

OAK Research revisits LayerZero’s role in crypto after the $292M rsETH exploit, asking whether omnichain interoperability creates more systemic risk than value

Aave details April's rsETH bridge exploit that forged a LayerZero message, releasing 116,500 unbacked rsETH and triggering a DeFi-wide recovery effort that secured over $300M in commitments

Safe Wallet module exploit drains $7.8M in rsETH on Ethereum

Kelp DAO sues LayerZero and co-founder Bryan Pellegrino over rsETH bridge exploit

MEV bot front-runs $7.81M rsETH exploit, leaving Gnosis Safe whale with $7.73M loss

Kelp sets June 15, 2027 deadline for rsETH recovery from sunset networks with 100 USDC fee

OAK Research revisits LayerZero’s role in crypto after the $292M rsETH exploit, asking whether omnichain interoperability creates more systemic risk than value

Aave details April's rsETH bridge exploit that forged a LayerZero message, releasing 116,500 unbacked rsETH and triggering a DeFi-wide recovery effort that secured over $300M in commitments

Comments

Total stats

How to Earn

More on $rsETH

Safe Wallet module exploit drains $7.8M in rsETH on Ethereum

Kelp DAO sues LayerZero and co-founder Bryan Pellegrino over rsETH bridge exploit

MEV bot front-runs $7.81M rsETH exploit, leaving Gnosis Safe whale with $7.73M loss

Kelp sets June 15, 2027 deadline for rsETH recovery from sunset networks with 100 USDC fee

OAK Research revisits LayerZero’s role in crypto after the $292M rsETH exploit, asking whether omnichain interoperability creates more systemic risk than value

Aave details April's rsETH bridge exploit that forged a LayerZero message, releasing 116,500 unbacked rsETH and triggering a DeFi-wide recovery effort that secured over $300M in commitments

Safe Wallet module exploit drains $7.8M in rsETH on Ethereum

Kelp DAO sues LayerZero and co-founder Bryan Pellegrino over rsETH bridge exploit

MEV bot front-runs $7.81M rsETH exploit, leaving Gnosis Safe whale with $7.73M loss

Kelp sets June 15, 2027 deadline for rsETH recovery from sunset networks with 100 USDC fee

OAK Research revisits LayerZero’s role in crypto after the $292M rsETH exploit, asking whether omnichain interoperability creates more systemic risk than value

Aave details April's rsETH bridge exploit that forged a LayerZero message, releasing 116,500 unbacked rsETH and triggering a DeFi-wide recovery effort that secured over $300M in commitments