u/badplayz99 — reddlx

How did a single config crash the entire market?

This is one of those moments where a single mistake impacted everyone.

Not a bug. Not a contract hack. KelpDAO just showed where the real risk in DeFi lies.

What happened:
On April 18 at 20:35 (MSK), a hacker minted 116,500 rsETH (~$293M);
That’s about 18% of the total supply, and these tokens were completely unbacked;
How: the bridge via LayerZero was configured with requiredDVNCount = 1.

What does that mean?

The hacker sent a fake cross-chain message through LayerZero, gained access to KelpDAO’s escrow, and withdrew 116,500 rsETH (~$293M).

And that’s not even the worst part — instead of dumping the tokens, the hacker used them as collateral.

So what happened next:
The hacker deposited rsETH into Aave;
Then borrowed 52,834 WETH (Ethereum) and 29,782 WETH + 821 wstETH (Arbitrum);
In total, extracted around $200–236M.

Part of the funds was moved to Tornado within ~20 minutes. DEXs weren’t even touched to avoid crashing the price.

Who got hit:
rsETH holders from KelpDAO;
Umbrella stakers (Aave): $177M deficit, 60–70% slashing;
Aave lost $6B TVL overnight, market panic followed;
Pendle, Yearn, Ethena, Beefy: all started freezing positions urgently.

And the most interesting part — there was no “hack” in the usual sense:

KelpDAO contracts worked fine. EigenLayer wasn’t touched. LayerZero as a protocol is fine.

The entire issue came down to a bridge configuration mistake.

Full breakdown: https://defiprime.com/kelpdao-rseth-exploit

Now think about the risks — are those APYs from second-tier protocols really worth it?

u/badplayz99 — 4 days ago

▲ 1 r/CryptoTechnology

ALTCOINS - SCAM. THERE WILL BE NO MORE ALT SEASON

Have you also noticed how many experts have appeared in the media today, claiming that there will definitely never be an alt season again?

At the bottom of the market, I'm not so sure that the alt season will take place... as they are sure that it definitely won't

Of course, they are selling their brilliant ideas/products that will help to make money and recover from losses in a market that is now dead forever.

This was also the case in previous cycles at the bottom of the altcoin market. But then there were much fewer experts involved in the market, and fewer people participating.

In this regard, I have only one question: "Why do all these newly minted visionaries clearly understand what exactly won't happen, only at the moment when the market is at its bottom and has already managed to disappoint the majority, including themselves?"

In my opinion, the altcoin market is in that very phase when it's time to teach them all a lesson.

Cryptocurrency is about bubbles, about manipulation, about emotions: disappointment and euphoria, without which the altcoin market would have ceased to exist long ago.

Disappointment - this is the state that everyone always experiences at the bottom of the market, not at the peaks. At this moment, they bury the market and never buy.

In the moment of euphoria, at price maxima, even for "air", you can hardly find experts pushing for sales. In this state, no one counts how the daily yield of a particular blockchain has become possible lately. In a state of euphoria, everyone doesn't care what the blockchain is earning, the main thing is how much more a speculator can earn by holding a position.

And do you still believe in tens, and maybe even hundreds of x on altcoins?

reddit.com

u/badplayz99 — 4 days ago

▲ 10 r/CryptoInvesting

Does anyone actually understand all the fees on exchanges?

Every time I think I understand how fees work, I discover something new like spread differences or execution price changes.

Is it just me or is this unnecessarily complicated?

reddit.com

u/badplayz99 — 7 days ago