Kelp DAO faces three tough options after $292M rsETH hack

DeFiLlama founder 0xngmi said on X that Kelp DAO has three potential post-hack measures to consider after suffering a $292 million (116,500 rsETH) exploit over the weekend. The options are: - Distributing the loss across all users, resulting in an 18.5% asset reduction for everyone. - Concentrating the loss on rsETH holders by reducing the value of rsETH on Layer 2 networks to zero. - Rolling back assets using a previous snapshot and compensating only for the stolen funds, a measure considered difficult to implement due to subsequent asset movements. All three scenarios are expected to create risks for Aave, potentially forcing it to sell AAVE tokens or incur bad debt. Aave has currently frozen rsETH across its V3 and V4 protocols and has also frozen its WETH reserves. Aave founder Stani Kulechov stated that the incident was a hack of an external bridge, not Aave itself, and that the team is working to minimize further damage.