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Arbitrum Bridged WETH (Arbitrum One) 
As the security crisis stemming from KelpDAO in the cryptocurrency market escalates, Aave has issued an official statement. The protocol announced that urgent measures have been taken regarding rsETH markets following the incident.
Aave announced that the rsETH markets on Aave V3 and Aave V4 have been frozen. This step was taken following an attack on the KelpDAO’s rsETH bridge. The statement also added that Aave smart contracts were not directly attacked, and the problem stemmed from a security vulnerability on the rsETH side.
In line with this decision, new deposit and borrowing transactions using rsETH collateral have been temporarily suspended. The Aave team stated that this move was implemented to assess the current situation and limit potential risks.
Related News BREAKING: Rumors Swirl That Today’s Hacking Incident Could Be Much Larger – Aave Takes Action
On the other hand, the team announced that they are thoroughly examining the rsETH borrowing transactions that took place on Aave after the attack and that the findings will be shared with the public as soon as possible. The protocol also stated that if a “bad debt” occurs as a result of these developments, various options for how to close this gap will be evaluated.
*This is not investment advice.
