Kelp DAO Completes Main Recovery Work Tied to rsETH Exploit

Kelp DAO has completed the main recovery work tied to the rsETH exploit, a major incident that affected the protocol's normal activity in April. The final tranche of 20,373.72 rsETH was sent to the rsETH OFT adapter on May 25, marking the end of the operational part of the recovery plan.

The recovery effort focused on refilling the LayerZero OFT adapter after the exploit disrupted rsETH backing and temporarily halted normal protocol activity. The incident involved an attacker who delivered a forged LayerZero packet to the rsETH OFT adapter, releasing about 116,500 rsETH from Kelp's Ethereum side bridge adapter.

The attack also affected Aave and other DeFi protocols, as the attacker used part of the released rsETH as collateral to borrow assets. The recovery plan centered on restoring rsETH backing by gradually refilling the LayerZero OFT adapter with funds from the Aave Recovery Guardian and the Kelp Recovery Safe.

With the final tranche now sent, the recovery effort moves from active refilling to monitoring. Users can track complete rsETH backing through Kelp's public dashboard, while normal minting, redemption, and rewards operations have resumed after the unpause.