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Five Months After the Kelp Hack, Aave Is Still Down $8 Billion

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Core Development: Five Months After the Kelp Hack, Aave Is Still Down $8 Billion
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Deposits on Aave stood at $18.1 billion as of this writing, which is approximately 31% below the $26.1 billion it held the day before April's Kelp hack, according to DefiLlama.

The lender's own code never failed. What failed was the collateral behind its loans, in a place those loan contracts could not check.

On April 18, attackers went after how Kelp DAO's cross-chain bridge checked incoming messages, not its lending logic. Kelp is a liquid restaking protocol, and rsETH is its receipt token.

An rsETH holder does not hold ether. They hold a claim on staked ether, and that claim crossed a bridge first. They corrupted the data feeds that bridge trusted and pushed a fake message through it. That released 116,500 rsETH worth about $292 million, close to 18% of the token's supply, with nothing behind it.

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