Bits + Bips: How the Kelp rsETH Hack Left Aave With $193M in Bad Debt
Apr 28, 2026•10 min
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Episode description
Luke Leasure and Shaunda Devens of Blockworks Research explain how three compounding failures, Kelp's one-of-one bridge signer, Layer Zero's permissive default settings, and Aave's failure to flag it as a collateral risk, set up the conditions for the exploit.
Shaunda Devens then breaks down the monolithic pool design that concentrated risk, showing how 98% of rsETH collateral was backing a single leverage looping strategy.
This clip is from a longer conversation on the Kelp rsETH hack and its implications for DeFi. Full episode here: https://youtube.com/live/hJ9X_btsvD0
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