Aave could face up to $230 million in losses after Kelp DAO bridge exploit triggers DeFi chaos

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Aave published a report outlining two possible outcomes: around $123 million in losses if damage is shared across all rsETH, or up to $230 million if confined to Layer 2s, with the final impact depending on how Kelp DAO allocates the shortfall.

2026’s biggest crypto exploit: $292 million gets drained from Kelp DAO with wrapped ether stranded across 20 chains

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An attacker drained 116,500 rsETH, roughly 18% of circulating supply, from Kelp’s LayerZero-powered bridge on Saturday, triggering emergency freezes across Aave, SparkLend, Fluid and Upshift.