Solana Lending Markets Reel from KelpDAO Hack

A recent hack on KelpDAO's rsETH product has sent shockwaves through Solana's DeFi lending ecosystem. On April 20, a malicious event targeted the platform, leading to a rapid depletion of available liquidity across Solana's stablecoin lending markets.

The affected protocols include Jupiter Lend, Kamino Prime Market, and Marginfi, all of which have reported high utilization rates. For example, Jupiter Lend has seen its USDC supply reach 99% utilization, with $340 million already lent out. This has resulted in rising borrowing costs for users who need liquidity.

The KelpDAO hack has not yet been fully contained, and the impact on liquidity remains a concern. Prediction markets suggest that market confidence is low, with some prices predicting a deep price drop for Solana. However, it's essential to note that these predictions are based on zero actual volume traded in those markets.