The KelpDAO rsETH security incident triggered broader DeFi outflows, with Aave, Morpho, Sky Protocol and JupLend recording major withdrawals as concerns spread across multiple blockchain ecosystems.
The KelpDAO rsETH security incident expanded beyond Fluid’s precautionary market pause and led to significant outflows across DeFi lending protocols. Aave saw about $6.2 billion in outflows, while Morpho recorded $716 million in net outflows, Sky Protocol $272 million, and JupLend $76 million. DeFiLlama founder 0xngmi said the impact has spread across ecosystems including Solana. Earlier, Fluid said it paused markets that could have been affected by the incident, reported no material rsETH exposure on L2, and stated that user funds remained safe as of April 19.