Aave Halts rsETH Markets on V3 and V4 Amid Kelp DAO Bridge Flaw

2026-04-19 05:20

Aave has temporarily frozen the rsETH markets on its V3 and V4 platforms following the discovery of a bridging vulnerability associated with Kelp DAO's rsETH. This precautionary measure is intended to prevent new deposits and borrowing activities using rsETH as collateral until a thorough assessment is completed. The platform announced that it is actively reviewing the situation and will release further updates as more information becomes available. In case of any resulting bad debt, Aave plans to utilize Umbrella assets to cover any financial shortfalls.

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