rsETH Incident Report by LlamaRisk
Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.

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$230M bad debt across L1/L2 scenarios is Umbrella-territory and forces the DAO treasury into the coverage math if the worst case lands. Bridge risk was always the underpriced leg of the LRT trade — protocols modeled slashing and depeg but treated cross-chain attack surface as a rounding error. Whether Kelp wears the loss or Aave absorbs it sets the template for how every restaked asset gets priced as collateral from here.

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rsETH Incident Report by LlamaRisk
Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.

More coverage

Explore the topic

More on L2

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Ethereum's next growth wave will be driven by real businesses choosing Ethereum L1+L2 over standalone chains, with Robinhood cited as the blueprint for onchain adoption

Lighter CEO explains why Robinhood Chain chose Ethereum L2 for its infrastructure

Sophon shutters L2 chain after failing to find product-market fit, shifts focus to app studio and Base deployments

Coinbase-backed Base activates Azul mainnet upgrade, introducing multiproof (TEE + ZK) system to push Ethereum L2 toward Stage 2 decentralization and faster withdrawals.

Ethereum is losing talent and community goodwill because the EF prioritized ideology and the L2/Dencun roadmap over ETH tokenomics and the ultrasound money thesis, while rivals aggressively fight for market share.

Aave unfreezes WETH supply on Ethereum Core V3 after Kelp exploit, LTV stays at 0 with L2 markets frozen

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rsETH Incident Report by LlamaRisk Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.

More coverage

Explore the topic

More on L2

Ethereum's next growth wave will be driven by real businesses choosing Ethereum L1+L2 over standalone chains, with Robinhood cited as the blueprint for onchain adoption

Lighter CEO explains why Robinhood Chain chose Ethereum L2 for its infrastructure

Sophon shutters L2 chain after failing to find product-market fit, shifts focus to app studio and Base deployments

Coinbase-backed Base activates Azul mainnet upgrade, introducing multiproof (TEE + ZK) system to push Ethereum L2 toward Stage 2 decentralization and faster withdrawals.

Ethereum is losing talent and community goodwill because the EF prioritized ideology and the L2/Dencun roadmap over ETH tokenomics and the ultrasound money thesis, while rivals aggressively fight for market share.

Aave unfreezes WETH supply on Ethereum Core V3 after Kelp exploit, LTV stays at 0 with L2 markets frozen

Ethereum's next growth wave will be driven by real businesses choosing Ethereum L1+L2 over standalone chains, with Robinhood cited as the blueprint for onchain adoption

Lighter CEO explains why Robinhood Chain chose Ethereum L2 for its infrastructure

Sophon shutters L2 chain after failing to find product-market fit, shifts focus to app studio and Base deployments

Coinbase-backed Base activates Azul mainnet upgrade, introducing multiproof (TEE + ZK) system to push Ethereum L2 toward Stage 2 decentralization and faster withdrawals.

Ethereum is losing talent and community goodwill because the EF prioritized ideology and the L2/Dencun roadmap over ETH tokenomics and the ultrasound money thesis, while rivals aggressively fight for market share.

Aave unfreezes WETH supply on Ethereum Core V3 after Kelp exploit, LTV stays at 0 with L2 markets frozen

Comments

Total stats

How to Earn

rsETH Incident Report by LlamaRisk
Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.