DeFiLlama founder 0xngmi stated via X that Kelp DAO, which suffered a $292 million (116,500 rsETH) hack over the weekend, has three possible post-incident measures. These are: △distributing losses to all users △concentrating losses on rsETH holders △rolling back assets using a previous snapshot but only compensating for the stolen amount. In the first option, all users would incur an 18.5% asset loss. The second option focuses losses on rsETH holders by making the value of rsETH within Layer 2 zero. The third option is observed to be difficult to implement due to significant asset movements already having occurred. All three options are also expected to create a risk for Aave, either requiring them to sell AAVE or leading to the creation of bad debt. Currently, Aave has frozen rsETH across V3 and V4, and also frozen WETH reserves. Aave founder Stani Kulechov stated, "This incident is an external bridge hack, not Aave itself. We are working to minimize further damage."
