--- title: "KelpDAO's rsETH Theft Sparks Concerns Over Asset Security and Market Impact" type: "News" locale: "en" url: "https://longbridge.com/en/news/283240098.md" description: "The KelpDAO rsETH theft has raised significant concerns regarding asset security and market implications. Influencer benmo.eth points out that wrapped assets like LRT are less secure than native assets, leading to potential changes in lending protocols. LayerZero may lose market share as some assets stop using its cross-chain solutions, and Aave's security reputation is under scrutiny. The incident could shift focus towards lending businesses rather than individual platforms, increase costs for Layer 2 in acquiring Total Value Locked (TVL), and prompt DeFi to adopt a more conservative security model." datetime: "2026-04-19T03:33:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283240098.md) - [en](https://longbridge.com/en/news/283240098.md) - [zh-HK](https://longbridge.com/zh-HK/news/283240098.md) --- # KelpDAO's rsETH Theft Sparks Concerns Over Asset Security and Market Impact On April 19, crypto influencer benmo.eth highlighted the significant repercussions of the KelpDAO rsETH theft, attributing responsibility to both KelpDAO and LayerZero. According to BlockBeats, the incident may lead to several consequences. Firstly, the security of wrapped assets like LRT is not comparable to native assets, and lending protocols should not treat them as equivalent collateral. Secondly, LayerZero might lose part of its cross-chain market, as several assets, including usde and usd0, have ceased using its cross-chain solutions. Even if operations resume, restoring credibility will be challenging. Additionally, Aave's reputation for security has been compromised, bringing the risks of unified lending markets under scrutiny. Each new collateral asset introduces additional risks to existing ones, which is unfair to native assets. Aave V4 and modular lending may become future trends, potentially accelerating related transitions. The market will focus more on the lending business itself rather than individual platforms or curators, although this will increase business costs. Moreover, the cost for Layer 2 to acquire Total Value Locked (TVL) will rise, with some liquidity potentially returning to Layer 1. Lastly, DeFi may halt its expansion and adopt a more conservative security model while addressing AI-driven security threats like Anthropic Mythos. ### Related Stocks - [BITI.US](https://longbridge.com/en/quote/BITI.US.md) - [ABTC.US](https://longbridge.com/en/quote/ABTC.US.md) - [RIOT.US](https://longbridge.com/en/quote/RIOT.US.md) - [BTCS.US](https://longbridge.com/en/quote/BTCS.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [ETHE.US](https://longbridge.com/en/quote/ETHE.US.md) - [GBTC.US](https://longbridge.com/en/quote/GBTC.US.md) - [GLXY.US](https://longbridge.com/en/quote/GLXY.US.md) - [BLOK.US](https://longbridge.com/en/quote/BLOK.US.md) - [EZET.US](https://longbridge.com/en/quote/EZET.US.md) - [LMBO.US](https://longbridge.com/en/quote/LMBO.US.md) - [CONL.US](https://longbridge.com/en/quote/CONL.US.md) - [EETH.US](https://longbridge.com/en/quote/EETH.US.md) - [BTCW.US](https://longbridge.com/en/quote/BTCW.US.md) - [ETHW.US](https://longbridge.com/en/quote/ETHW.US.md) - [IBIT.US](https://longbridge.com/en/quote/IBIT.US.md) - [BITO.US](https://longbridge.com/en/quote/BITO.US.md) - [BSOL.US](https://longbridge.com/en/quote/BSOL.US.md) - [GSOL.US](https://longbridge.com/en/quote/GSOL.US.md) - [BITB.US](https://longbridge.com/en/quote/BITB.US.md) - [CONI.US](https://longbridge.com/en/quote/CONI.US.md) - [HODL.US](https://longbridge.com/en/quote/HODL.US.md) - [ETHA.US](https://longbridge.com/en/quote/ETHA.US.md) - [FETH.US](https://longbridge.com/en/quote/FETH.US.md) - [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md) - [QETH.US](https://longbridge.com/en/quote/QETH.US.md) - [BRRR.US](https://longbridge.com/en/quote/BRRR.US.md) - [BTF.US](https://longbridge.com/en/quote/BTF.US.md) - [FBTC.US](https://longbridge.com/en/quote/FBTC.US.md) - [SBIT.US](https://longbridge.com/en/quote/SBIT.US.md) - [ARKB.US](https://longbridge.com/en/quote/ARKB.US.md) - [BITU.US](https://longbridge.com/en/quote/BITU.US.md) - [ETH.US](https://longbridge.com/en/quote/ETH.US.md) - [CETH.US](https://longbridge.com/en/quote/CETH.US.md) - [ETHV.US](https://longbridge.com/en/quote/ETHV.US.md) - [EZBC.US](https://longbridge.com/en/quote/EZBC.US.md) ## Related News & Research - [AAVE fell down, SPK ate his fill](https://longbridge.com/en/news/283959713.md) - [Galaxy Announces First Quarter 2026 Financial Results | GLXY Stock News](https://longbridge.com/en/news/284368852.md) - [Hyperion DeFi Announces Participation in Upcoming Investor and Industry Conferences | HYPD Stock News](https://longbridge.com/en/news/284238761.md) - [Aave raises nearly 80% of the $200 million it needs to cover bad debt left by Kelp DAO exploit](https://longbridge.com/en/news/284119382.md) - [Here's Why I Wouldn't Touch (XRP) Ripple With a 10-Foot Pole](https://longbridge.com/en/news/284087195.md)