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Guavy AI Editorial Team••Sentiment: -3•Clout: 40

Industry Giants Push for Rate Limits After Record-Breaking DeFi Exploit

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Following the largest DeFi exploit of 2026, which drained $292 million from KelpDAO's LayerZero-powered cross-chain bridge, industry leaders are calling for built-in rate limits in DeFi protocols.

Protocols such as BitGo and Polygon have taken measures to contain the fallout. BitGo took down the LayerZero OFT DVNs for Wrapped Bitcoin (WBTC) as a precaution, while Polygon stated that its chain and broader ecosystem remain unaffected by the incident.

Katana also paused the OFT path on Vaultbridge due to concerns over security, but bridging through Agglayer, which verifies with zero-knowledge proofs rather than proof-of-authority multisigs, remained fully available.