Kelp DAO Reopens rsETH Deposits and Withdrawals After Near-$300 Million Security Incident

KelpDAO states that rsETH deposits, withdrawals, bridge access, and EIGEN claims are live on mainnet and Layer 2 networks after restoring operations and updating rewards on May 15.

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Summary

KelpDAO said it has restored rsETH protocol operations after a security incident described as involving nearly $300 million, reopening deposits and withdrawals on mainnet and Layer 2 networks and reactivating bridge and claim functions. Earlier updates said withdrawals and bridging resumed after Aave transferred the first batch of rsETH to the LayerZero OFT adapter, while deposits remained paused during a short stability window and the remaining rsETH would be moved over the next two weeks to refill the lockbox contract. KelpDAO also said reward accounting for the paused period was updated on May 15, with one update citing an exchange-rate update around 22:30 Beijing time and a later one citing staking rewards updated at 22:45 Beijing time. EIGEN rewards are now available to claim.

Terms & Concepts
  • rsETH: A liquid restaking token used in the Kelp ecosystem and designed to move across blockchain networks through bridging infrastructure.
  • LayerZero OFT adapter: A cross-chain token transfer tool based on Omnichain Fungible Token design, used to move fungible tokens between different blockchains.
  • EIGEN claims: Claiming rewards or entitlements linked to EigenLayer, the Ethereum restaking protocol.