Bits + Bips: How the Kelp rsETH Hack Left Aave With $193M in Bad Debt
Unchained
Laura Shin
4.6 • 1.3K Ratings
🗓️ 26 April 2026
⏱️ 10 minutes
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| 0:00.0 | Yeah, I'd say there's certainly some fault to be shared across the board here. |
| 0:05.7 | You know, kelp with over a billion and client deposits can do better than a one-of-one. |
| 0:14.0 | And certainly we know at this point, a one-of-one is pretty frowned upon. |
| 0:18.5 | Then, of course, Layer Zero, who had their off-chain RPC infrastructure compromised, |
| 0:26.7 | perhaps they shouldn't allow the one-of-one to be the out-of-the-box kit for new |
| 0:33.2 | deployers on the OFT standard and perhaps pushback more. |
| 0:37.9 | I think the numbers show close to 40% of those unique OFT deployments are on that, |
| 0:42.9 | that one of one. |
| 0:44.4 | Really? |
| 0:45.1 | So you're saying that 40% of people that use this infrastructure still have that one |
| 0:50.0 | of one? |
| 0:50.8 | Not a total capital, but of unique OFT deployments. And a number have since been |
| 0:58.0 | upgraded as well following the exploit. And hopefully, we saw a lot of unique asset issuers who run |
| 1:07.5 | the Lair Zero OFT. They had to freeze their infrastructure as well to evaluate |
| 1:12.2 | any compromises on their end. |
| 1:14.8 | And then third, downstream for AVE when listing the RSE as collateral, perhaps, of course, |
| 1:23.8 | the one of one signer on the OFT deployment that could have been flagged as a risk |
| 1:31.7 | for the collateral listing and parameters adjusted accordingly for that. |
| 1:38.0 | Yeah, you would think, I mean, I know we're going to, I think in this conversation, |
| 1:41.9 | we'll get to things like circuit breakers or rate limiting. |
| 1:45.3 | But, yeah, all those things certainly could have helped. |
| 1:49.4 | So, Shandra, back to you. |
... |
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