The $292 million Kelp exploit: how it happened, and what it means for DeFi

What Happened

A $292 million exploit targeting Kelp's rsETH token occurred over the weekend, exposing DeFi vulnerabilities. Attackers manipulated cross-chain bridge mechanisms to create unbacked tokens, then used them as collateral to drain assets from Aave lending protocol. The incident follows a $285 million Solana exploit, raising concerns about decentralized finance infrastructure security.

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