DeFi Sector Hit by Wave of Security Breaches

A recent security breach at Kelp DAO has left the DeFi sector reeling, with over $292 million lost due to the attack. The attacker targeted the LayerZero-powered rsETH cross-chain bridge within Kelp DAO's system, draining 116,500 rsETH tokens and using them as collateral on lending platforms to borrow ETH.

The incident is one of several high-profile DeFi attacks that have occurred in recent weeks, with over $600 million stolen from more than 10 protocols in just two weeks. Analysts point to the increasing use of AI by hackers to execute attacks more efficiently and effectively.