An attacker drained approximately $292 million worth of rsETH tokens from Kelp DAO's LayerZero-powered cross-chain bridge on Saturday. Kelp paused all rsETH contracts following the breach.
The attack targeted Kelp DAO's bridge infrastructure built on LayerZero, a cross-chain messaging protocol. The attacker successfully extracted 116,500 rsETH tokens before the protocol's operators detected the breach and halted operations.
rsETH is Kelp DAO's liquid restaking token, designed to allow users to earn additional yields on staked Ethereum. The loss represents a significant security incident in the liquid staking sector, which has faced multiple high-profile exploits in recent years.
Kelp immediately paused all rsETH contracts to prevent further losses and contain the damage. The incident highlights ongoing risks in cross-chain bridge protocols, which remain a common attack vector in decentralized finance.
Details regarding the attack vector and whether the vulnerability existed in Kelp's smart contracts or LayerZero's infrastructure were not immediately available. Recovery plans and affected user compensation have not been announced.
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