Overview
- The protocol executed the final transfer of 20,373.72 rsETH into the LayerZero OFT adapter on May 25, closing the operational phase of a coordinated recovery that restored minting, redemptions, bridging, and rewards.
- The recovery follows an April 18 exploit that released about 116,500 rsETH by way of a forged LayerZero packet, a failure investigators tied to a single‑verifier configuration and poisoned RPC data.
- Attackers used much of the stolen rsETH as collateral on Aave to borrow wrapped Ether, leaving roughly $190 million in bad debt and causing Aave’s total value locked to fall from about $26.4 billion to near $14 billion.
- Kelp and partners moved roughly 116,000–117,132 rsETH back into the lockbox through a coordinated plan using an Aave recovery guardian and Kelp recovery wallets, and Kelp’s live dashboard now shows about 100.01% ETH backing.
- Unresolved issues include active court disputes over ~30,765 frozen ETH, a public dispute between Kelp and LayerZero over verifier choices, and Kelp’s planned migration of cross‑chain plumbing to Chainlink CCIP as part of wider governance and transparency reforms.