Lido proposes to use up to $5.8 million in stETH to fill the Kelp funding gap

Odaily Planet Daily News: Lido has initiated a proposal to allocate up to 2,500 stETH (approximately $5.8 million) from the DAO to cover the rsETH asset shortfall caused by recent attacks on Kelp DAO.

Lido pointed out that this LayerZero-based exploit has led to insufficient rsETH reserves and triggered a chain reaction in the DeFi ecosystem, including rising interest rates, tense lending markets, and some leveraged strategies facing forced liquidations.

The proposal emphasizes that these funds will only be used as part of a complete recovery plan, provided that the overall shortfall can be fully filled.

Previously, the $292 million attack on Kelp DAO affected Aave, causing bad debt issues, and its total value locked (TVL) once dropped nearly $8 billion.

STETH-1,24%
AAVE1,75%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin